Buying insurance for your car is a form of financial protection against the loss of theft, which we all need to have. The risk of theft and damage are ever present, and you should do whatever you can to have a financial plan in place in case of those incidents do occur. There are many types of car insurance on the marketing. You can buy insurance for your car which covers the bare minimum, and then you get insurance for your car which covers all of the unwanted scenarios.

When buying insurance for your car, you would need to speak to an insurance broker or agent, these brokers or agents work on a commission bases, so it is more than likely that they will try to sell you more insurance for your car than is necessary. Which leads one to the question, ‘Are you paying too much insurance for your car? ‘, and if so how would you know?

When you hardly drive your car

Many people do not realise that if you do drive their car often they do not need to pay full insurance. Recently pay per drive car insurance policies have become popular. Pay Per Drive, means that you pay insurance according to the amount of kilometres you drive on a monthly or yearly basis. Due to high fuel prices, a good public transport system, or a work from home job, many people hardly use their cars. You may have car insurance for many years now and either not know that this type of insurance is available to you or it is not offered by your insurance company. You could be paying much more for your car insurance if you drive your car infrequently, yet have not switched to a pay per drive car insurance plan. Speak to your insurance company about this option. If they do not have it then find a car insurance company which does offer this type of insurance and you can save yourself a lot of money on monthly car insurance payments.

You have collision insurance for an old car

If you have an old car and you are paying collision insurance you may be paying too much for insurance. If you find yourself in an accident with your old car, and the damage is bad the car could be considered a total loss by the insurance company. This means that they will only give you back the money which the car was worth. You could be paying much more in monthly premiums, than what your car is actually worth. The insurance company will not give you back the excess amount you have been paying in monthly premiums, so you lose all that money.

These are two indicators that you are paying too much for your car insurance. If you are paying too much insurance for your car do not be afraid to dispute it, it is your money after all! If they are not willing to give you a cut in your premiums then it is time to make a switch.

For more information on insurance car, go to http://www.youinsure.co.za