I bet the very first time you realized that it was time to phone for a couple of insurance quotes, you never once dreamed how complex and overwhelming insurance coverage can be. There could possibly be stuff you thought your policy covered, but when it was time to claim you came to the realization you were not properly insured. There might be certain adjustments and exceptions on your policy that you were not aware of - this can quickly turn into your worst headache.

Herewith a few the most frequent insurance misunderstandings, thoughts and false ideas investigated further:

As my car's value depreciates every year, my insurance premiums would also be reduced, right? That could appear to be a rational conclusion to you, but keep in mind that vehicles are usually fixed and not replaced (as far as feasible obviously!) and the fact is that the price of components, labour etc increases yearly.

If I decide on a particular policy now, my premiums will stay exactly the same year after year, aside from the 12-monthly inflation, right? No, not necessarily. Premiums are generally only set for a year. After a year insurance firms would assess your claim history of the past year and your premiums might be modified accordingly. If you ended up being a high risk customer by claiming a few times in the past year, your monthly premiums will most probably increase. On the other hand, if you've demonstrated that you are able to maintain a squeaky clean claim track record, you may also be rewarded by lower monthly premiums.

If my insurance policy includes an excess amount, I will only need to pay this excess if the accident was my fault, right? Unfortunately not! An excess amount is generally a voluntary amount - you commit to pay the excess amount regardless of the cause of the accident or incident. The majority of insurance firms will endeavor to recover the excess amount from the guilty party if the accident was not your fault, but this differs from company to company and cannot always be guaranteed. When acquiring insurance quotes, check into the different excess options available and also how that would influence your premium.

I have a gear-lock, so I don't need to take any other precautions, right? Once more, not quite! Many insurance companies won't say yes to an insurance policy if there is not some other form of security such as an immobilizer or a tracking device. The more security you have in your car, the lower your premiums as you are then considered to be a low risk consumer.

There is no need to see my car before you insure it, right? Some insurance companies would want to inspect your car before finalizing your insurance policy. You can in the meantime obtain a number of insurance quotes, but the insurance coverage would not be activated before this assessment. They firstly have to inspect if the safety precautions in your vehicle meets their criteria and secondly they have to make sure that the car is in the condition you declare it to be in.

Unfortunately there are plenty of chance takers out there- both in the form of dishonest clients and insurance companies wanting to take advantage of clients, therefore it is rather important that both sides (the insured as well as the insurer) take measures to protect themselves. Never assume, even if you have to ask a million questions, ensure that you completely understand your insurance plan.

I guess the very first time you realized that the time had come to phone for a few insurance quotes, you never once dreamed how complicated and overwhelming insurance plans can be. There could be things you thought your policy insured, but when it was time to claim you realized you were not properly covered.

For more information on insurance quotes, got to http://www.afi.co.za