Everyone who owns a car needs insurance. But how can you be sure you’re paying a fair price?
The simplest way is to get an insurance quote to make sure the
premium fits your budget and represents the fair value of your vehicle.
That’s just good common sense. You wouldn’t expect to pay the same premiums for a Ferrari and a small city car.
However, it’s a little more complicated than that. How much is your car worth? Brand new, it’s worth whatever the retail price is. But the moment your car leaves the showroom, it is worth a little bit less. And with every day that passes and kilometre driven, the value decreases even more. Likewise, every nick and scratch and spilled cappuccino is going to affect the value of your car.
In other words, cars are defined as ‘depreciating assets’. Their value decreases with normal use and over time.
So when we say a premium should reflect the value of the vehicle, we shouldn’t only consider the value of the vehicle when new. Ideally, you want to pay a premium that fairly represents the value of your car even as it loses value.
Now insurance companies should adjust your premium as time goes on. There’s one big problem with this: whether and how they adjust your premium is entirely at their discretion.
So how can you tell whether your insurance premiums will fairly reflect the value of your car in six months, in twelve months, in five years? Frankly, it’s not clear that you could.
That’s why the King Price insurance model is so welcome. King Price is a budget insurance company whose car insurance premiums get cheaper each month.
That’s right, depreciation is built right into the product. So you don’t have to hassle your insurer to adjust your premium every few months and hope that their sums happen to work out to your benefit. Rather, you can simply sit back and watch your monthly premium automatically get cheaper as each month goes by. That’s reassuring.
How much money will you actually save, though? That’s the real question. Get a quote now to find out.