Taking Out Insurance as a First-Time Car Buyer - 17 Aug 2009 12:01
Taking out insurance as a first-time car buyer can be an intimidating process. What most new car owners don’t realise is that you need to take out insurance before you drive off the showroom floor with your new vehicle. In fact car financiers have made it mandatory for all financed vehicles to be comprehensively insured to protect their investment.
While you must insure the car before you collect it, the insurance policy can only take effect once the car is registered in your name and the insurer has received the registration number.
While most banks offer car insurance or are affiliated with an insurer who can provide this, you don’t need to take out insurance with them even if they are financing your vehicle. Do not feel compelled to take out a policy with them. You can insure through an external insurance provider not affiliated with any particular bank, such as OUTsurance, Dial Direct and Hollard or other short-term insurance provider.
This means you can shop around for quotes. This is especially great if you are a younger driver and expect to pay a lot more for car insurance. Finding a competitive quote is also easy with online quoting and is a simple enough process to do on your own without a broker.
Even with direct insurance, you can tailor the policy to your needs and don’t have to pay additional chargers, as you would for a broker. Saving on cost as a buyer of a new vehicle is always a plus and worth the effort and time to find a good policy.
Taking out insurance as a first-time car buyer can be an intimidating process. What most new car owners don’t realise is that you need to take out insurance before you drive off the showroom floor with your new vehicle. In fact car financiers have made it mandatory for all financed vehicles to be comprehensively insured to protect their investment.
While you must insure the car before you collect it, the insurance policy can only take effect once the car is registered in your name and the insurer has received the registration number.
While most banks offer car insurance or are affiliated with an insurer who can provide this, you don’t need to take out insurance with them even if they are financing your vehicle. Do not feel compelled to take out a policy with them. You can insure through an external insurance provider not affiliated with any particular bank, such as OUTsurance, Dial Direct and Hollard or other short-term insurance provider.
This means you can shop around for quotes. This is especially great if you are a younger driver and expect to pay a lot more for car insurance. Finding a competitive quote is also easy with online quoting and is a simple enough process to do on your own without a broker.
Even with direct insurance, you can tailor the policy to your needs and don’t have to pay additional chargers, as you would for a broker. Saving on cost as a buyer of a new vehicle is always a plus and worth the effort and time to find a good policy.