Insurance Costs Play Big Part in New Car Purchase Decisions

When buying a new car the insurance costs play a big part Insurance policy costs are also determined on the repair costs of the car.

Many consumers believe that a car insurance company will determine policy costs based on how much it would cost them to replace the car if it is stolen or damaged beyond repair.

However, Pinion Insurance Brokers warns car buyers that groups will also examine the cost of repairs before determining how much consumers will pay on their premiums.

A large proportion of insurance claims in South Africa's car insurance industry are due to accidents, and therefore it is only natural that insurance groups will examine how much car repairs cost before giving a quote on a policy.

"The average cost to repair a vehicle is affected by the level of technology sophistication that you buy," said Debbie Donaldson of Pinion Insurance.

She warns that imported cars are very expensive to repair, and some even require that special parts be shipped to South Africa if they are in need of repair.

"As part of your purchase decision it is important to obtain this information as it may affect your service experience and repair experience in the event of a claim," she said.

She also pointed out that some car models are targeted by a specific age group of drivers.

If these are young drivers, the cost of insurance on those models may be higher.

"Some models of high performance cars tend to be driven by younger markets," she explained, "which as a group have a higher accident rate. Cars in this bracket will often have a higher premium."

Therefore, it is very important to examine all these costs before purchasing a car.