Rent-to-own a car is a good option if you want an interest free finance option, a car that is in good condition with affordable monthly repayments. Another benefit is that because most rent-to-own cars are second hand, or rather what we prefer to call as ‘pre-loved’, you will also avoid the high percentage of deprecation when compared to buying a new or demo model. When you rent-to-own a car, there are a few important factors you need to bear in mind, which includes car insurance. We’ve compiled a handy beginner’s guide to car insurance that is relevant to a rent-to-own a car finance option.
Car insurance costs depends on several factors including the monetary value of the car, its make and model, your age, gender, work and residential area, including the number of accidents that you may or may not have had in the past. Importantly, the type of insurance cover, for example, comprehensive insurance vs. Third-Party only, will also impact the monthly premium. Your premium is the amount of money you need to pay every month. An insurance deductible is the amount you will need to pay upfront, before your insurance will pay for the claim. When signing up for car insurance, you will be given a number of options to choose from.
How do I choose Car Insurance Cover?
Speak to a financial advisor about the type of cover that suits your needs and is affordable. When speaking to a financial advisor, give examples of a few scenarios that might help you to fully understand the risks and your obligations, such as what would happen if someone drives into your car, or if you car is hijacked and recovered, or if you accidentally reverse into a pole, for example. In South Africa, a number of insurance options are available, namely Comprehensive, Third-Party only, Third-Party and Fire, and Third-Party, Fire and Theft.
How do I find an Insurance Provider?
There are a vast number of car insurance providers on the market today. Search online and explore your options. Thereafter contact the providers online, request a quote from a few and then compare these quotes in your own time. Before making a final decision, always read online reviews and the fine print.
If you don’t have a credit history and need a car, we at Earn-a-Car are able to help you own a pre-loved car that suits your needs and your budget. Blacklisted or have a low credit score? No problem. Complete our online application form and if you meet the minimal requirements, we will contact you, and you could be driving away in a car within twenty-four hours.