Vehicle Insurance Questions Answered

To drive around with car insurance is a recipe for disaster. Accidents can happen anytime, anywhere and motorists should take the necessary precautions. Car owners should invest in a good insurance policy that will cover bumper bashes, write-offs and theft. We answer all your vehicle insurance questions on this page.

Car insurance in South Africa is not prerequisite by law for all drivers, but it acts as a safeguard. A car insurance policy ensures that the insurance company takes full responsibility for loss or damages through accidents or theft that involves you. Otherwise, you will have to foot the bill yourself, which could be a financial catastrophe. It’s important for policyholders to educate themselves and understand all the conditions, inclusions and exclusions if something were to happen to their vehicle.

Vehicle Insurance Questions – What Are the Golden Rules?

The golden rules of car insurance are the following:

  1. Understand what you’re getting. Know what exactly the cover means in every scenario.
  2. Be honest and inform your insurance company about any changes such as additional drivers. Make sureVehicle Insurance Questions Answered all your personal information stays up to date.
  3. Insurance companies will only pay that is stated as per the contract, nothing less and nothing more.Educate yourself on what is covered, including all factors because insurers will only provide coverage when it comes to predetermined factors, such as:
  • The make, model, age and condition of your vehicle which will determine the replacement value.
  • The insurer will decide if your car is worth repairing or too costly to repair, which means writing it off. If this is the case, the vehicle’s insured price at the time is what will be paid out, depending on the terms of the contract.

 

Vehicle Insurance Questions – What About Market Value?

  • Market value is considered the average of the retail and trade-in value. Retail value is the price you pay, versus trade in value which is the amount of the trade-in price. Most insurers pay out the market value, but it may not be enough to cover the costs of a brand new vehicle.

The cost of your insurance premium will are highly dependent on some factors such as comprehensive or third party insurance. The type of vehicle it is also counts, along with its repair costs, theft rate and safety measures. The insurer takes into account the age of your car because of spare part availability, as well as the age of the driver as younger individuals have a higher accident rate. Security factors such as locked garage and living area predetermine your premium costs, which includes tracker devices,  micro-dotting features and alarm systems. They take into account your driving record, gender and traffic violations.

In a country with rampant theft and hijackings, insurance is a must for any driver on the road. Although it can be expensive, it’s not worth risking financial ruin for a minimal monthly premium. Do your research and get comparative online quotes. Also ask family and friends for advice to find the right premium for your budget and your car.

Next step: Request a car insurance quote.
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All info was correct at time of publishing October 23, 2018