When must I take out Car Insurance in South Africa?
November 9, 2018
You are heading for trouble by driving without insurance, no matter how cautious a driver you may be. What about the thousands of uninsured, couldn’t care less drivers out there? Take out Car Insurance without delay.
Good insurance is essential, as it eases the mind of the policyholder. Not having to worry about vehicle theft, accidents or damage puts your mind at rest.
Car insurance takes many forms. From the most basic to complete cover. There are -Comprehensive cover, Third-party fire and theft and Third party only policies.
Take out Car Insurance Before an uninsured Driver Takes you Out
In South Africa, car insurance has become costly due to policies containing strict conditions because of inherent risks, such as unlicensed driving and criminal activity.
The insurance industry faces many challenges, among them weak consumer knowledge of its products.
Take out car insurance; it’s a contract between you and an insurance firm. The company assumes the financial responsibility due to theft or damage to the insured’s car. Always read through any policy documents to fully understand any exclusion articles, terms and conditions, and terminology.
Accidents and vehicle hijacking statistics in South Africa provide enough evidence to convince you of the need for insurance. In the past several years, repair costs have skyrocketed and with them dramatic increases in average claim costs.
Take out Car Insurance and make Our roads a Safer place
The short term ombudsman emphasised in his annual report the need for public education on insurance. A large percentage of complaints from insurance providers is vehicle-related. A lack of insurance knowledge is partly to blame for this.
Insurance firms offer different insurance products and benefits. Picking what is right for you may be confusing so shop around for quotes. At least three comparative quotes are highly advised, as is reading the fine print of the policies. Look out for hidden costs like additional excess.
Additionally, consider an insurance provider’s reputation for claim payout times, price and service. Look into its viability as a financial services provider and make sure to have a discussion about the policy you would like to buy with your broker or insurer.
Cheap insurance Means minimal Cover
Many car owners search for methods and ways to obtain inexpensive motor insurance. A common complaint is about high premiums. However, driving without insurance can cost you a lot more if you have an accident.
It is best to view insurance as an ongoing process. Every year have your car inspected as its value lessens over time. The book value determines the claim payout.
Premiums paid based on purchase price while the vehicle’s value has dropped means paying premiums for more than the car is worth.
Comprehensive insurance is packaged in two parts, theft and accident, with the latter being the larger. Labour and spare parts cost more over time as the vehicle depreciates, without premiums dropping to reflect this.
Premium adjustment should be therefore discussed often with your broker or insurer. Driving cautiously, even with insurance in place, is wise.
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All info was correct at time of publishing