Rands and Sense with Bertus Visser

Bertus Visser

PARK ANY DOUBTS: INSURANCE TIPS FOR SECOND – HAND CARS

In recent months, second-hand car purchases have accelerated as the economic impact of Covid-19 and lockdowns have been felt and travel needs have changed. For some, second-hand cars are an attractive option, but they come with insurance considerations too.

BEFORE YOU BUY

There are various options when it comes to purchasing second-hand cars, including being able to check if a car has been in an accident. Make sure you buy from a reputable dealer, and be extra cautious when buying a vehicle online. Unfortunately, fraud is a reality. When buying from a dealer, you may be able to request an e-Natis document to determine if the car was stolen.

Second-hand cars may not cost as much as new cars, but keep in mind that they may require more frequent repairs or have different safety measures in place. Also, a second-hand car may have had features added after the vehicle was bought. Make sure these extras, such as a sound system, are included in your insurance.

DO THE SUMS

While new cars often include a maintenance plan, maintenance won’t necessarily factor into your purchase price when you buy a second-hand car. You need to consider the cost of services, new parts and licenses.

A second-hand car is not necessarily less of a crime target than a new car, and you are at equal risk of getting into car accidents. Upgrading security could be a prudent move, but it’s also worth checking what would be needed, or would impact your insurance premium.

The retail value of your vehicle is also worth discussing with your adviser or broker, as you could qualify for a reduced premium based on your car being an older model. Your adviser will be able to advise on products worth considering for vehicle maintenance too.

All vehicles need to be maintained so that they run well and don’t malfunction, so obtaining a service history on a second-hand car is helpful, if possible. Remember to service your car regularly (even if you don’t drive often – every 15 000 kms or once a year is a good guideline to follow), and to check that tyres are rotated and replaced as needed. It is up to you to ensure your vehicle license is kept up to date.

KEEP YOUR POLICY UPDATED

Your second-hand car will need to be properly added to your insurance policy. Be sure the correct information is carried over to your cover. Many of us have moved homes recently or are working from home and may have forgotten to update this information.

Bertus Visser is the Chief Executive of Distribution at PSG Insure