Car Insurance Basics

10 Really Dumb Car Insurance Mistakes

December 15, 2014

10.  Accepting Liability after an Accident

When you pay your premiums, what you are essentially telling your insurer is, “handle my liabilities”. Why pay the insurance company to do it and then take it up again? If it is something minor, deal with it. If it has the smallest hint of major, call in your “Liability Manager” to take it from there.

9. Lying on Your Proposal Forms

The insurance company uses the proposal form to determine how much premiums you should pay. If they find out that you lied about your car or yourself, then you will be in big trouble. Declare modifications, and any other material information about the car. That way, you will have a better chance of settled claims in the future.

8. Trusting Your Insurance Agent Too Much

Trusting your auto insurance agent too much is detrimental. He is first a businessman, and has personal interests to protect. Get some knowledge for yourself so that you can ask intelligent questions, and get fair services. Trust your agent, but no more than your landlord.

Related: 5 Ways You Could Lose Your Insurance

7. Not Reading Your Policy Document

Do not just assume that your policy is like everyone else’s. It important to have a full understanding of what to expect, in case of any eventualities. For instance, you are not automatically entitled to a courtesy car in a comprehensive policy if your policy does not say so.

6. Buying too Little Insurance

If you have bought a very popular car (especially with car thieves), then you need comprehensive cover because of your heightened risks. If a third party cover does not make you feel safe, then buy more cover, and enhance the cover to take care of all your practical risks. Too little can be too little too late if you lose your car.

5. Buying too Much Insurance

On the other hand, why do you need a comprehensive cover for a car that never leaves your garage? Why do you need a courtesy car if you have access to a whole fleet of company cars (or your own private collection)? Just buy what you need, and no more. The extra money you pay will not buy you any practical benefits.

4. Failing to Compare Quotes

Comparing quotes is the secret to a fulfilled shopping experience. Start early, compare widely, or just use insureafrika free car insurance online quote form and get all the details you need for your car insurance in a jiffy.

Related: Driving With Expired License Can Ruin Insurance

3. Forgetting to Change your Insurance Sticker

The further you are from where the sticker is, the dumber you get. Do not keep the sticker in a drawer, your glove compartment, or anywhere else except where it is supposed to be- on the windscreen. After all, it is a sticker. Stick it!

2. Driving with an Invalid License

If your license is expired, you are illegally on the road. If you end up in an accident, you are on your own. How dumb is that.

1. Driving without Insurance

In fact, this is the worst thing to do when it comes to car insurance in Kenya. If you are arrested, you are toast. If you cause an accident, you are toast. If someone else hits your car, you are toast. If your car is stolen, you are toast. Can’t think of anything worse than driving without valid motor insurance. 

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