In most countries other than South Africa, it is a legal requirement for you to insure your car. Some interesting car insurance information for South Africans is that you had better have it, although it is not mandatory here.
Momentum is one of the insurance companies that offer car insurance, but there are many others. Regardless of which insurance company you insure your car with there are three types of cover. It all depends on how much coverage you want or how much you are willing to pay. These three categories are known as the third party, third party fire and theft and comprehensive.
Car Insurance Information – Different Types
- Third Party – This is the cheapest type of insurance that you can have by law. This particular type of insurance does not pay for any damage to your car. Nor does it pay for injuries you may incur due to an accident. However, it ensures that if you do damage to other people’s property or their person (third party), your insurance company will pay those costs.
- Third Party, Fire and Theft – This insurance is the same as third party cover. However, in addition to paying for damages to third parties in cases of accidents, this policy will pay for the repairs to your car. The insurance applies if the damage is caused by fire or other natural disasters, or is stolen.
- Comprehensive Insurance –This is the best type of insurance and so is, therefore, the most expensive. If you have this kind of insurance, it will pay the same as above. But also, if you or your vehicle sustains injuries or damage due to an accident, the insurance company will also pay for those.
Car Insurance Information – Excesses on Claims
All car insurance policies with any insurance company will require you to pay an excess on any claim. This excess is the first portion of the amount claimed. And the sum of this excess may differ from policy to policy and company to company and also depending on the circumstances. However, Momentum argues that their excess payments will always remain the same for the life of the policy.
How much you pay for any of these insurance policies will very much depend on the make and year of your vehicle. In most instances an insurance company will use ‘the book’ price as the appropriate value of your car. However, if your particular vehicle does not appear in ‘the book’ for some reason, the insurance company will carry out their evaluation. You will have to agree on an estimated value.
Car Insurance Information – Estimating Values
It is important that both you and the insurance company agree on the value. The amount will be the deciding factor on as to how much you can claim, should your car be stolen or ‘written off’ in an accident.
Some insurance companies, when deciding on the price of your the policy, may take into consideration the age of the regular driver for the vehicle. If you intend to use your car or carrying out business, it is best to get a policy that covers business use rather than one meant for private use only.
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