A young driver's practical guide to car insurance during COVID-19
The reality is that life comes at you fast. One minute you’re happily sponging off of your parents’ insurance policy and the next you’re being thrust into adulthood with the reality that you will now have to take out your own car insurance. On top of that, you have to contend with COVID-19 and the alternate reality the virus has created. Times are tough, money is tight, and you might be wondering if the foregoing car insurance for now would be okay.
Let us tell you it’s never a good idea to skip car insurance, even for a day. Because it would be that day without cover that something would go wrong.
But there is no need to panic-search for car insurance policies because we’re here to help guide you. So, sit tight, buckle up and close all those unnecessary search tabs because what you need to know about car insurance during the Coronavirus pandemic is right here.
Why you need to get with the (insurance) programme
As a first-time driver, very few memories will compare to the moment you are handed the keys to your first car and you finally get to drive your new set of wheels off of the showroom floor. And while it’s safe to assume you’re eager to get out onto the open road, there is one more important thing you have to consider when it comes to owning a vehicle – comprehensive insurance.
Here's the thing: no one likes the idea of adding another monthly expense to their list of debit orders. We get it. Especially if you are a younger driver who has a smaller budget to work with. And with the Coronavirus affecting the security of many people’s jobs, it’s even more tempting to do without car insurance. The harsh reality, however, is that car insurance isn’t so much a luxury as it is a necessity. Your insurance premium isn’t just another expense. It’s a form of surety, protection and peace of mind. Opting out of this comprehensive cover is not only negligent but unsafe. Even if you’re stuck at home most of the time and your risk is lower, your car could still be stolen or damaged, so don’t think nothing’s going to happen while the ‘Rona is around.
Also remember that the longer you go without car insurance, the higher your premiums will be in the future. This includes any gaps in cover you might have. So while it might be tough to make your monthly payments now, it will all be worth it in the future.
So, if you were waiting for a sign to finally sort out your car insurance – here it is.
If that wasn’t enough of a hint, let this global pandemic be a reminder of how important your overall safety is. This sentiment extends past just your overall health. It includes keeping yourself safe on our roads too, particularly as we continue to be inundated with harrowing roadside accident statistics. Choosing Car Insurance means you are granted immediate access to holistic car insurance care that protects you from the moment you pull out of your driveway. You can be certain that we will work around the clock to assist you whenever you are in need.
What’s better is that our team remains mindful of the ever-fluctuating nature of your budget (particularly during this pandemic), which is why we have provided R19 million in premium relief for our customers as well as the ability to add and remove cover for certain things that aren’t essential, right now.
Putting the brakes on high premiums
There is a common misconception that continues to loom over the car insurance industry, and it is the notion that car insurance for young drivers is particularly expensive or financially unattainable. In fact, the pricing associated with young drivers is often thought to be beyond the average person’s financial means, resulting in many young drivers opting out of comprehensive cover.
Now, we aren’t going to lie - comprehensive cover isn’t exactly free, but it doesn’t have to break the bank. And with Dialdirect it won’t.
We have curated each and every one of our policies in a way that ensures every driver on our roads has access to exceptional vehicle care at an affordable price. Even if you are under the age of 25. If you’re still worried about paying too much for car insurance, know that we are also the only insurer to give you up to 75% of your premiums back in cash every month, just for driving right, depending on the cover and payback option that you are paying for.
When you have Comprehensive Car Insurance, you can choose to add Monthly Payback to your policy, where you could earn up to 75% cash back. All you have to do to start earning cashback is download the Dialdirect Insurance App and track your trips. Your Payback is dependent on the option selected. In order to qualify for the full 75%, Payback Booster must be selected at an additional cost.
And if you’re tired of mom and dad saying they drive better than you do, create a driving challenge and see who really is the best driver in the house.
How we calculate your premium
There are a number of factors that influence how much money you will have to contribute to your monthly premium. Here are a few:
- Personal information including your age, physical address, how long you’ve been insured for, and where you work. Unfortunately, drivers under 25 years old are considered a higher risk, so your premium is going to be higher than your parents’ rates.
- Vehicle information including your vehicle make, model, and its safety features, like a tracking device and anti-smash-and-grab windows.
- How safe your car is where you park it. Is it behind a locked garage or on the street?
- Whether or not you have made a previous insurance claim in recent years.
- The number of kilometres you estimate you’ll be driving yearly.
- How long you’ve been insured without any gaps.
This information is then gathered by our team and used to calculate just how ‘risky’ insuring you is going to be.
Gearing down on monthly premiums
Finding affordable car insurance as a young driver may feel like a trying task, but that shouldn’t deter you from seeking out the coverage you deserve. It also shouldn’t lead you to settle for inadequate protection or cause you to be on the brink of debt. Thankfully, we have drafted a little cheat sheet on how to bring down your premium amount to ensure you receive comprehensive car insurance at a price you can afford
1.Get comfortable behind the wheel
Practise makes perfect. We encourage you to spend time improving your driving skills. Download the Dialdirect Insurance App to get tips on how to improve your driving and get rated after every trip you take to see if you’re improving. You could also go on an advanced driving course that will teach you what to do in dangerous situations on the road.
2. Don’t pimp your ride
We understand it can be tempting to kit out your car with a brand-new high-tech sound system, new rims and boot spoilers, but the issue here is that these come at a rather hefty price. Why? Because these additions increase your risk factors. Try to keep the car in its original state and your wallet will be forever grateful.
3. Make your safety a priority
When it comes to car insurance, security is vital. Try to rev up the security measures you have in your car. You can start by adding a central locking system or an effective tracking device. If possible, keep your vehicle behind an automated gate or in a locked garage. Essentially, the higher your safety precautions the lower the premium.
4. Bring up your credit rating
It’s time you build up some credit because your credit history will impact your premium. We do this as a form of surety to verify you are regularly paying your credit accounts on time. If you pay your other accounts, you’re more likely to pay your insurance premiums. Work on gaining a little more credit strength and watch your premium decrease significantly.
5. Ask your parents for help
We know you want your independence. That doesn’t mean you can’t ask your folks for a little help. If you put your car insurance on their policy and pay for it yourself, you can keep your autonomy while taking advantage of their long and hopefully good driving record.
If you are still feeling overwhelmed by all the insurance notes, tips, and tricks, just know you are not alone. We have all been here before. The only difference is that you have access to our team. Lean on our knowledge and expertise as we help you switch lanes to superior car insurance that doesn’t merely understand young drivers, but caters to them too.
Do your thing. Get back ching.
The information in this article is provided for informational purposes only and should not be construed as financial, legal, or medical advice.