Car insurance basics protects your vehicle, you and other parties from the results of a road accident.
Insurance offers financial compensation which covers any injuries to other drivers, pedestrians or passengers as well as damage to property.
Car Insurance Basics for All South Africans
- Third party insurance only. This is the most basic and usually the cheapest. The insurance covers drivers if they are in an accident or injure someone as well as covering the cost of repair and replacement of another person’s vehicle. There is no cover for damage to your own vehicle.
- Third party, fire and theft insurance. It is the same as third party cover but also covers you if someone steals your vehicle or fire damages it. When comparing car insurance quotes online, insurers will assess your car’s risk of exposure to theft and fire so if you can prove anything that can mitigate that risk, such as parking safely in a garage, you will likely enjoy a lower monthly premium.
- Comprehensive car insurance. This is the highest level of cover. It is the most expensive cover since it will insure you against the cost of replacing or repairing the car if it is in an accident. That is regardless of whose fault it is as well as covering you for fire, theft and third party claims. Some insurance companies will include additional extras when you take out comprehensive cover such as cover for personal items in the vehicle, medical expenses or legal cover where necessary.
The Key Factors to Calculating insurance Premiums For car insurance basics include:
- the make and model of the vehicle
- where you keep the car most of the time
- the primary driver’s experience and age
- place of residence
- what you use the car for
- history of claims
- previous car offenses
Always Keep an Eye on the Excess
Excess also needs to be kept in mind when seeking car insurance quotes. This is the amount the insurance holder has to pay towards the cost of any claim.
There are types of excess: Compulsory which is set by the insurance company and Voluntary which the insurance holder can decide whether to include an excess and the amount thereof.
Often the premiums will be cheaper when the voluntary excess is increased. When comparing Car Insurance basics, quotes will vary depending on the excess levels. To find out how much the quotes will change you got to get a quote.
With a variety of insurance companies and differing premiums on the market, the best way to compare offerings is online by just entering a few basic details.
It’s the easiest way to shop around for an insurance company that is going to meet your car insurance cover requirements as well as your budget.
Car insurance basics is what you are looking for because we all need to be covered.