Car Insurance 101

It was probably second-hand, a bit dented, maybe it made a funny rattle when you took a corner hard, and maybe it had old burger-sauce stains all over the backseat…. But you loved it anyway.

Still, no matter how fondly you felt about your first wheels, things change. Perhaps you climbed a few rungs on the corporate ladder, or maybe you just discovered a very real need for speed.

When it comes to insuring a car, you need to do what’s right for your car’s life stage. Follow the easy steps below to pick the best insurance option for your needs.

Stage 1: The First-timer

Just like the jolly jalopy you bought during your final year at university, one’s first-ever car can be a source of great personal pride. It’s important to be realistic about it being a potential source of grief if you’re ever in an accident.

If your first car is already starting to fall apart at a higher speed, then you should definitely consider a third-party only insurance policy. Especially if the car was a hand-me down. This will keep your insurance policy cheap as chips, but will ensure that you are covered in the event that you damage someone else’s car or property during an accident.

Picture: Thinkstock

Stage 2: The Ageing Beauty

She was probably a real looker back in her day, but none of us escape the ravages of time, and this second-hand skedonk is no different.

You’ve stopped taking her for the most expensive services, and the mechanic who lives across your friend’s building is your first choice when it comes to repairs. She’s been a loyal car to you for many years, but you have to admit that there’s a new Polo on the streets that’s caught your eye, and it won’t be too long before the old dame is retired for good. Still, if someone just came along and took her away from you now, it would break your heart… and your bank balance.

Consider third-party, fire and theft insurance for a car at this stage. You’ll get a payout or a new car of equal value if she does get stolen, and you’ll also be covered in the event that you accidentally damage someone else’s car.

Stage 3: The Trophy Ride

She’s the apple of your eye, your dream car. You’re her first and only owner. It was love at first sight, and even if she’s not the yellow Lambo you pictured yourself driving when you were nine, you wouldn’t give her up for anything.

You know every tiny scratch and dent from lovingly washing her every Sunday afternoon, and your friends all know to finish their snacks before climbing in.

That’s why you need to make sure you’ve got full, comprehensive insurance to cover every possibility.

–          Gideon Galloway, CEO at King Price Insurance.