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"One is contractually bound to insure a vehicle or any asset that is financed by a financial institution. Cancelling one's insurance is a breach of the contract between the buyer and the organisation that has financed the purchase. Should something happen to the vehicle they could end up driving a vehicle that is damaged, which will decrease its trade-in value. In the worst case scenario they could find themselves in serious financial trouble should the car be stolen or written off, as they are still liable for repayment of the financing. In addition, they still need to replace their vehicle."
The reality though is that consumers are looking to reduce expenses, and are asking, 'Is affordable insurance no longer an option?'
"Growth in the insurance market has meant consumers have more options when selecting short-term insurance products."
When shopping around for insurance, Bauermeister advises:
He says there are also ways to keep your existing insurance premiums down. "These include doing your best to maintain a claim free record which can result in significant savings. In addition if over 55, you qualify for substantial savings on your premiums."
Bauermeister also warns against being tempted to supply false information to keep premiums down. "Don't claim you are the primary driver if in fact your son or daughter is driving the vehicle. In the event of a claim, the insurance company will not pay if you have supplied incorrect or false information. Also don't claim to keep the car in an area where premiums are lower than for instance in a larger city which is considered greater risk and therefore subject to higher premiums. Providing incorrect information is a criminal offense and could render your insurance policy invalid."
"For hassle free driving, make sure you have insurance, and the right insurance. If you do run into financial difficulties, contact your insurance company or broker as soon as possible," Bauermeister concludes.
