Motor insurance is something most drivers know they need, yet many still misunderstand how it works. Policies are often purchased quickly, based on price or assumptions, and then forgotten until a claim arises. Unfortunately, that is when costly mistakes tend to surface.
Understanding common pitfalls can help drivers protect themselves financially and ensure their cover performs as expected when it matters most.
Choosing Price Over Protection
One of the most common mistakes drivers make is focusing solely on the cheapest premium. While affordability matters, the lowest price often comes with reduced cover, higher excesses, or critical exclusions.
A low monthly premium may look appealing, but it can result in significant out-of-pocket costs after an accident, theft, or hijacking. Insurance should be evaluated on value and protection, not price alone.
Not Understanding What Is Actually Covered
Many drivers assume their policy covers more than it does. Third-party, fire and theft, and comprehensive insurance all offer very different levels of protection.
Failing to understand what is included – and what is excluded – can lead to unpleasant surprises. For example, some policies exclude certain types of damage, accessories, or specific uses of the vehicle. Reading policy wording may seem tedious, but it is essential.
Under-Insuring the Vehicle
Insuring a vehicle for less than its true value is another frequent error. Drivers may intentionally reduce insured value to lower premiums, unaware of how this affects claims.
If a vehicle is written off or stolen, the payout may be far less than what is needed to replace it. Even partial losses can be affected if average clauses apply, leaving drivers responsible for a portion of repair costs.
Overlooking Excess Amounts
Excess is the amount paid by the policyholder when making a claim. Many drivers only notice the excess once an accident occurs.
Policies may include multiple excesses, such as standard, age-related, or incident-specific excesses. A low premium paired with a high excess can be financially difficult when a claim is made, particularly for common incidents like minor collisions or windscreen damage.
Failing to Disclose Relevant Information
Non-disclosure is one of the fastest ways to invalidate a claim. Information such as previous accidents, claims history, vehicle modifications, or how the car is used must be disclosed accurately.
Some drivers unintentionally provide incorrect details, while others underestimate their importance. In either case, insurers may reject claims or cancel policies if material facts are omitted or misstated.
Ignoring Changes in Circumstances
Life changes, and so do risk profiles. Moving to a new area, changing jobs, increasing mileage, or adding a regular driver all affect insurance risk.
Failing to update policy details can result in inadequate cover or claim rejection. Keeping insurers informed of changes ensures the policy remains valid and relevant.
Assuming Theft and Hijacking Are Always Covered
In South Africa, vehicle crime is a real concern, yet some drivers assume theft and hijacking cover is automatic. This is not always the case, particularly with basic or third-party policies.
Understanding whether theft, hijacking, and related damage are included is critical, especially in high-risk areas or for vehicles that are frequently parked overnight away from secure locations.
Not Reviewing the Policy Regularly
Insurance is not a “set and forget” product. Vehicle value depreciates, premiums change, and cover needs evolve.
Annual reviews help ensure the policy still offers appropriate protection and competitive value. Loyalty does not always guarantee the best cover or service.
The Cost of These Mistakes
Individually, these mistakes may seem minor. Collectively, they can result in rejected claims, financial strain, or total loss after an incident.
For drivers looking to avoid car insurance mistakes, the solution lies in understanding cover, asking the right questions, and reviewing policies with real-world risk in mind.
Final Thoughts
Motor insurance is more than a legal or financial formality – it is a safeguard against uncertainty. Avoiding common mistakes allows drivers to protect their vehicles, finances, and peace of mind.
By choosing cover carefully, staying informed, and reviewing policies regularly, motorists can ensure their insurance does what it is meant to do: protect them when the unexpected happens.
