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Is Taking Out Insurance, On The Car Dealership Floor, The Right Option

You’ve been busting a gut to get that promotion, at work, and now that it has finally happened, you’ve decided to buy that new car you’ve had your eye on for a while. The ink on the paperwork has dried, the dealer is about to hand you the keys, but, before he does, he asks you if you’ve got insurance in place. Damn, you clean forgot, so you ask the dealer if he can arrange it for you quickly. 25 minutes later the dealer comes back saying your insurance is in place and off you drive in your new jammie, enjoying that new car smell. But have you made the right decision by allowing the dealer to arrange your insurance for you (without checking out the terms & conditions of the cover)?

The reality is that the insurance that has been put in place might not be the most appropriate cover for you.

This is what should have happened before you drove the car out of the dealership parking lot:-
  • You should have phoned around for several quotations
Why do you need several quotations? Well, let’s put it this way: has the company you work for ever decided to buy something or secure a service without getting at least 3 quotes or proposals? The answer is a resounding ‘No’. How do you know if you are getting the best deal if you haven’t shopped around?
  • You should have made sure you were insured correctly
Did the dealer take the time to make sure you were insured correctly? Are your address details correct? Are you insured for business or private use? Did he arrange top up cover for the credit shortfall gap? Perhaps he did, but chances are he didn’t. Come claim stage and you can’t go back to the dealer, can you? You are going to end up carrying the can.
  • You should have requested proof of your cover
“Thanks Mr Swart, you are covered; now you can take your car home.” That might have been all you got from the dealer. Is that good enough? At the very least, if you have got the dealer to arrange cover, get proof of the cover (via a policy schedule) before you run the risk of putting that new car on the road.

Sometimes in our haste to get things out of the way, we miss stuff that can come to bite us down the line. We have all been guilty of this at some point or another, haven’t we?

Be prudent and careful when it comes to making important decisions, like taking out insurance. Failing to do that means running the risk of a massive financial calamity. And who needs that, right?

Have you taken your car insurance out in a rush? Perhaps now is the time to review it and get a couple of quotes.

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The iHound