Types of Car Inusrance in SA
Approximately 65 percent of South African drivers do not have auto insurance cover. That is an alarming statistics for the 35 percent of those who do. So, what is keeping that 65 percent from making the responsible decision and purchasing at least the minimum cover?
Lets commence by summarizing the types of insurance.In south africa, auto insurance coverage has three basic types.
The minimum cover is Third Party. If anyone damage other’s personal property in an automobile accident it covers the liability (costs). This includes other vehicles or structural property that may also be damaged and also the minimum cover is third party
You can add a minimum value by purchasing a Third Party Fire and Theft cover. That will cover the cost in the event of your car being damaged by or incase of theft.
Comprehensive Cover is the recommended cover for most South Africans. It includes Third Party Fire and Theft and also covers damage to your own vehicle in an accident that is deemed your fault. It also includes additional coverage such as extending cover when you drive someone elses car.
Other vehicle insurance options are designed to meet the needs of drivers operating in the unique South African driving environments. These include motorcycle cover, off-road comprehensive cover, and caravan cover.
South Africa is often a world leader in traffic injuries and fatalities and the roads are becoming increasingly dangerous. Car theft and hijackings are also all too common. Because South Africa is a high risk insurance environment, premiums can be high. But you can take some steps to lower your premiums.
When deciding on a policy, it’s best to shop and compare quotes first. The best way to do this is by looking online which may enable you to get a lower price according to the company you want to work with.
Drive safe and save on your premiums. Claim-free years should earn you rewards from your carrier. If not, scout for companies that would offer value rates to you.
During the purchase of insurance, you should check the maximum amount that you are going to paid if claimed. If this excess amount is high, then premium will also be high. Selection of maximum amount depends on you. It gives you benefit on long run, if you can afford higher excess amount.
Are you an owner of an expensive or high performance vehicle, if so you will end up paying more for premiums. These luxury vehicles attract high rates to insure as it is expensive to replace or repair. Keep in mind when buying a car that insurance premiums adds to the value of owning it.
Insurance companies often have minimum security requirements for the vehicles it secures, so if you add security devices that exceed the minimums, you could receive a discounted premium.
Living in high crime areas leaves you at risk for a car theft or high jacking. Considering a possible relocation could bring your premiums down a substantial amount.Parking your car in a safer enviroment such as a locked garage or behind locked gates could also give you a discount.
Most of all, dont be afraid to negotiate. An insurance company that is interested in your business will be willing to work with you in order to earn your business.
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Written by Tom Martens on November 18th, 2009 with
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