Comprehensive car insurance for all types of vehicles from everyday cars to luxury sports cars, trucks and campervans.
Driving a car is something which most of us do every day. Even though it is part of daily life, this activity still carries a large amount of risk. You can get into an accident and damage your car and other people's property.
Just as you should have medical insurance in case of a medical emergency, you should have car insurance in the case of a collision or accident.
You can get injured and injure others as well. In such situations, car insurance is essential. It is designed to help you overcome the financial consequences of road accidents.
The Basics of Car Insurance
There are three ways in which you can be protected with vehicle insurance. You can get third party liability cover which is a policy that will pay compensation to members of the public (third parties) that have incurred property damage or bodily injury during an accident caused by you.
Your car will be covered for the damage incurred in a road accident. In this way, the policy will pay the cost of repairs.
You can also cover your car against theft, fire and other perils. If you are found responsible for causing property damage and/or bodily injury to people when driving your car, you will have to pay compensation to them.
When you do not have car insurance, you will have to pay the money out of your pocket and this may literally ruin you financially. When you have a policy, the insurer will pay a major chunk of the compensation amount. By paying monthly premiums for car insurance, you will lower your risk of great financial loss in the future.
Why you Need Car Insurance
There is no legal requirement for vehicle owners to have car insurance in South Africa. If you've taken out a loan to buy your car, the lender may require you to buy a policy.
Even if you are not required to get covered, you will benefit greatly if you choose to do so. The benefits exceed the cost by far.
There are many providers of car insurance in South Africa and this gives you the opportunity to get the most affordable and competitive deal by shopping around for insurance quotes online or elsewhere.
Benefits of Auto Insurance:
- Liability Protection - All legal costs, damage and personal injury claims filed against you will be covered by the policy if you are found to be at fault.
- Uninsured Motorist Cover - Your insurance policy will pay compensation to you in case the driver responsible for the accident is uninsured and unable to compensate you.
- Theft cover - The policy will pay for the repair or replacement of your vehicle in case of a theft, theft attempt or hijacking.
- Accident repair cover - The insurer will pay for repairs to your vehicle due to damage incurred in a collision with other vehicles, objects or people.
Finding the Right Car Insurance
The best strategy to use is comparison shopping. You need to obtain car insurance quotes online and compare them. Applying for quotes and obtaining them is free.
You should get quotes from as many insurers as possible. Another really important thing is to provide only accurate information in the quote request form.
Comparing Car Insurance Quotes
There are two main factors to focus on when comparing car insurance quotes. These are the benefits and the cost. You have to consider the comprehensiveness of the cover or the number of threats which it will protect you against.
The exclusions are the perils which you will not get protection for. The fewer there are the better. The insurance amount is the maximum amount of money which the insurer will pay out when you make a claim.
It has to correspond to your needs just as a term life insurance policy must cover all debts and expenses your family will incur if you were no longer around. You should never buy less coverage than you need as this can cause financial difficulties for you later on.
The cost of the policy must be affordable and must therefore take into consideration your income and expenses. The policy which offers the best value for money is the one which enables you to buy the maximum insurance amount per rand.
Car Insurance Cost
The cost of your car insurance is called your premium and is paid annually but it can also be divided into monthly instalments. The premium on each policy is determined based on the individual risk of the car owner.
The factors which determine your level of risk and consequently, the policy premium, include the type of vehicle which you have, the place where you live, your driving record, your age and gender and whether you will use the vehicle for personal or business use.
Types of Car Insurance Policies
Auto insurance policies in South Africa fall into three major categories that vary in terms of comprehensiveness and cost. You will be able to pick the most suitable one for you in line with your needs. If you've only recently obtained your vehicle and, have opted to finance it through a bank or alternative lender, it may be a good idea to obtain credit insurance to cover the cost of the loan in the even of your passing.
The main options which you have include:
1. Third party car liability insurance
This is the most basic and the least expensive of the three options. If you are found responsible for causing a road accident and you have to pay compensation to other people involved for damage to their property or for injuries which they have incurred, the insurer will cover these costs. However, the company will not pay for the repair of your car or other personal property of yours.
2. Third party liability, theft and fire car insurance
This is an upgraded version of the basic cover. Your liability as a vehicle owner is covered. Additionally, the insurer will pay for the repair or replacement of your vehicle in case of theft, theft attempt, hijacking, fire, explosion or lightening damage.
3. Comprehensive car insurance
It covers you for all of the above-mentioned. In addition, the policy will pay for the repairs to your car needed because of an accident irrespective of who is at fault. A comprehensive policy can also include additional benefits such as roadside assistance, towing and storage and even basic medical assistance. It is up to you to decide whether these extras are worth the extra cost.
Optional Extras Available
There are optional extras which can be added to your policy. Since these are optional, you have the freedom to decide if they are useful and worth the extra cost. The list includes car hire coverage and non-standard accessory coverage. For instance, you can cover a custom sound system integrated in the car.
If you have just bought a new car, you should inform your life insurance provider as you may need to extend your cover to include the new car loan and the associated risks.
Finally, before you obtain a car insurance policy, you must read the terms and conditions of the policy very carefully and ensure that you understand them perfectly. If you have any questions, you should not hesitate to ask an expert such as a broker.