Getting a new ride? Remember to update your car insurance
Updating your car to the latest tech or newer model not only influences your driving experience but could also have an impact on your insurance, which is why it’s important to update your policy when you’re updating your ride.
Having vehicle insurance gives you the peace of mind that you’ll be financially protected if your vehicle is damaged or in an accident, but if you change (or are planning to change) your vehicle, remember to update your insurance policy to ensure you’re still adequately covered as it might save you from legal hassles later.
Why you need to update your car insurance policy
Buying a new car is exciting, but it's also essential to remember that your car insurance premiums and coverage are personalised based on your profile as a driver and your car's data.
So, if you buy a different car, the data will change, which can impact your premium and coverage. For example, a newer car with improved safety features might qualify for more affordable car insurance, while a faster or more powerful car could potentially mean being charged more for liability.
Forgetting to renew your car insurance could be costly as your insurance company may have different coverage requirements for a different vehicle, leaving you out of pocket when it comes to repairing or replacing your new ride.
Updating your insurance policy, however, ensures that you have the following benefits:
| Legal compliance | New feature protection | Adequate cover | Changes to premium |
|---|---|---|---|
| Updating your policy will ensure you meet the mandatory legal requirements of owning a new car, as well as give you peace of mind knowing that you are adequately covered and protected against unforeseen events. | New car features such as safety technology and anti-theft devices may lower your insurance premiums, while a more powerful model may require higher coverage and premiums. | Updating your insurance policy when buying a new car ensures that you have adequate coverage for the value of your new vehicle, protecting you from financial loss in case of theft or damage. | Updating your policy can help you understand any changes that were made to your monthly premiums, allowing you to make informed financial decisions. |
You should also review your car insurance policy under the following circumstances:
- You change your vehicle usage: changes in your daily commute or car usage may require updating your policy to reflect new driving habits, with some insurers offering usage-based insurance that adjusts premiums based on mileage and safe driving practices.
- You add modifications to your car: if the value of your car has increased in any way, you may need to adjust the coverage for adequate protection, such as increasing comprehensive coverage for expensive aftermarket parts in case of theft or damage.
- You change your address: If your daytime or night-time address of where you park your car changes, you will also need to notify your insurer. Your premiums might change if you’ve moved to an area with a higher or lower rate of vehicle theft.
- Your car insurance company makes annual changes: it’s always a good idea to review your policy whenever your insurance company makes changes to its policies or rates. You may find that there are better options available to you that could save you money or provide better coverage.
Top tip: Verify your coverage
It’s always a good idea to check and make sure you’re fully covered, not only in terms of keeping your policy up to date with any changes, but it could make a difference to your premiums.
Keeping your insurer in the loop is a simple but crucial step. Ensure you’re properly covered at a price you’re comfortable with. Download the Standard Bank Insurance app today. Alternatively, call 0860 123 444 or contact your broker directly.
Disclaimer: This article is solely intended for information. It does not constitute financial, tax or investment advice or recommendation. Please speak to a financial advisor or registered financial professional before making any financial decision(s).
Standard Bank, its subsidiaries or holding company, or any subsidiary of the holding company and all of its subsidiaries make no warranties or representations (implied or otherwise) as to the accuracy, completeness or fitness for purpose of the information provided in this article or that it is free from errors or omissions.
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