It's go time: buy and insure your car during lockdown

This is a great opportunity to grab your dream car or trade down to a more economical set of wheels. Under current lockdown rules, you can now buy both new and used vehicles. To help you cruise through the process, we've put together a helpful guide to buy your car and insure it during the lockdown. 

Lockdown is working in your favour

The South African Reserve Bank cut the repo rate from 4.25% to 3.75%, meaning the prime lending rate has fallen to 7.25%. This has made it more affordable to take on a loan and reduces your monthly payments. 

Car dealerships are also jumping in with lockdown specials. You can look forward to reduced pricing, cash-back offers, 0% deposits, payment holidays, and even the freedom to structure your car deal. 

Steps to take at dealerships

Not buying your vehicle online? Then there are important precautions to take when heading into a dealership.

• Make an appointment before visiting the dealership. This will help the dealership minimise foot traffic at their business. 
• Keep your children at home for their safety instead of having them tag along. 
• Wear a face mask at all times.
• Maintain a two-metre distance between the staff and other customers. 
• Refrain from shaking hands or other forms of contact with staff.
• Abide by all requests to sanitise your hands or have your temperature taken. 

A lot has changed with the way vehicles are purchased. However, you'll still be legally required to take out car insurance if you've purchased it with a loan from a bank or other financial institution. 

Vehicle insurance explained

Short-term car insurance protects you or other listed drivers against various risks. Depending on your choice of insurance, this can include theft, damages, or accidents. Each month you pay a monthly premium to your insurance company who supports financial losses when incidences covered incur. 

Besides being a legal requirement, vehicle insurance provides many benefits. The Road Accident Fund processes claims slowly and has limited cover. With your own insurance, you can take matters into your own hands. Your insurance can repair and even replace your vehicle depending on the damages. It can cover medical expenses and protect you from lawsuits associated with accidents. Essentially, it provides complete peace of mind as you travel.

Types of vehicle insurance

There are three main insurances you can take depending on your needs and budget.

1. Comprehensive insurance: The best cover you can take protects you in the event of an accident, theft, hijacking, and damage including flooding and fire. It is compulsory if your car is being financed. 

2. Third-party, fire and theft insurance: The coverage is in the name. This protects you against damage done to another person's vehicle or property, fire, theft and hijacking. While you won't be protected for accidental damage to your own vehicle, it's a much more affordable option. 

3. Third-party insurance: This covers only the damage done to another person's vehicle. As the most basic of insurances, it's also the cheapest. 

Deciding on an insurance type and provider can be a challenge. With the help of an experienced vehicle broker, you can make a decision that's best for you.

Get a vehicle insurance broker

Short-term insurance brokers give you an advantage when getting vehicle insurance. They work to understand your unique needs, source multiple vehicle insurance options, and explain each one. Vehicle insurance brokers save you money by getting preferential rates through insurance providers. When it's time to claim, they do the heavy lifting. During the course of your policy, they keep you informed of any new developments. 

De Lucia Insurance Brokers and Financial Advisors (an authorised financial services provider: FSP 4186) are your go-to insurance brokers during the lockdown for detailed advice. We're available online and by telephone, ready to source a policy that matches your requirements. Make contact with De Lucia Insurance Brokers and Financial Advisors today or call Tracey-Lee Jordaan directly on 011 975 5911.