Most people every now and then decide they are paying too much for their vehicle insurance. They do a quick call around and, depending on the price, stay where they are or switch insurers.

"This is because most people believe that in the end all insurers and their products are pretty much the same," says Gari Dombo, Managing Director at Alexander Forbes Insurance.

This common assumption is, however, far from the truth. "A fact most people only discover when it is too late," warns Dombo.

To prevent yourself being caught short when it comes to payout ask these basic questions before choosing their next vehicle insurer:

• Who is insured under the policy? Is it just you, you and your spouse, or you, your spouse and your licensed children? In short, does the policy limit drivers to named drivers or include any licensed driver should this become necessary?

• What happens to your cover if a debit order bounces? Will your insurer pay out in the event you have missed a payment, or will you be left high and dry?

• Does your insurer cover manufacturer approved parts? In the event they don’t, this could jeopardise your vehicle warranty.

• What is your excess? Is it a percentage of the loss or a flat fee? Generally, percentage excesses result in people paying a lot more than anticipated.

• Will your insurer refuse to pay out if you crash while on a work related errand? Most people who only use their vehicles socially and to and from work do occasionally attend work-related meetings away from their offices. Many insurers only cover clients to work and back and will not pay out if your vehicle is damaged en route to a client meeting.

• Do you have car hire and for how many days? Many repairs take longer than 30 days, especially when parts have to be imported or your vehicle is in for repair during December or January.

• How much passenger liability does your vehicle insurance include? If a passenger is injured as a result of your driving does your vehicle cover provide you with liability insurance?

"The next time you are doing a quick call around, consider asking these questions. They will help you pay the right price for the right cover," advises Dombo.

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