First, you need to decide between comprehensive and third-party insurance. Comprehensive insurance covers theft, damage and thirdparty liability, while third-party insurance only covers damage to other vehicles, not your own. Comprehensive cover is typically recommended for newer or more valuable used cars.
Next, consider the vehicle’ s valuation, as insurance premiums are usually based on the car’ s market value. Older vehicles generally have lower premiums but it is still important to assess the total insurance cost to find the most suitable option for your needs.
Additionally, due to the higher likelihood of mechanical breakdowns in used cars, some insurers offer mechanical breakdown cover, which can provide financial protection for major repairs. Confirming whether this is included in your policy is important, as it may not always be part of standard short-term insurance cover.
Insurance providers may also require the installation of tracking devices or antitheft measures to qualify for better premiums or to meet security requirements. This is particularly important for second-hand vehicles that may not have the same security features as newer models.
Lastly, keep in mind that insurers may impose a higher excess on older cars, meaning you will need to pay more out-of-pocket in the event of a claim. It is worth comparing policies to find the right balance of affordability and protection.
MAKING AN INFORMED DECISION
The second-hand car market offers affordability and variety, but buyers must be careful with both the purchase and insurance. By thoroughly checking the vehicle’ s history, getting proper inspections and securing suitable insurance, you can avoid unexpected costs and enjoy your pre-loved car.
Just as you choose the car carefully, treat insurance with equal care. Providing accurate
vehicle details helps tailor the policy for better protection and peace of mind.
If you are unsure about what to disclose, it is always better to err on the side of transparency and seek guidance from your insurer. Information that could affect future claims – such as a history of the vehicle being written off, previous damage or if it’ s been rebuilt – should always be shared upfront. This transparency helps ensure that your claims are handled smoothly and you receive a fair settlement when needed.
Click here to learn more about PPS Short-Term Insurance.
Herman van Heerden
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