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VEHICLE INSURANCE DEFINED

Insuring your vehicle in case of damage or the event of an accident is a necessity for all drivers: young or old. Although driving an uninsured car is not considered to be illegal in South Africa, should you injure another person, or another persons property, while driving without car insurance, you will be responsible to pay any claims that may arise - out of your own pocket. If you do choose to get car insurance, it is important to understand how you can get reliable, worthwhile quotes and manage your insurance effectively in order to keep fees down as much as possible.

Great Tips for Saving on Car Insurance (Open in a New Window)

Car insurance is paid annually or in monthly installments and must be renewed on a yearly basis. There are currently many companies which deal with vehicle insurance specifically, ensuring that you have the opportunity to tour the market for a reasonable quote before making a final, informed choice.

It is always a productive idea to thoroughly search the market before deciding on which company to use for your year’s Insurance. Obviously, the business offering the best price is normally first choice, but it is also worth taking a look at other factors, including the insurer’s reliability, past reviews, future offers/deals and excess prices.

Mentioned above, excess prices often play a part in many available insurance deals. Although the whole purpose of the insurance is to cover damage costs to your car, some deals involve insurance excess as well. Excess payments are requested if damage is done to the car during the insured period. This means that as the car owner, you would be required to make a contribution toward the total repair costs, which varies in percentage depending on the overall necessary repair fees.

As a sensible and experienced driver, having excess payments as part of the deal can be quite handy in helping cut the costs of your premium. However, reckless and rushed driving is more likely to lead to accidents, which consequently requires up front payments - as well as making your premium higher in the future. Therefore, it is important to be focused and knowledgeable about how to use the road system appropriately.

Young South African citizens are liable to receive high premium quotes, due to inexperience. Despite being a generalisation of young people, companies who distribute offers to new drivers must be confident that the driver will be safe and mindful when on the roads. Without documents proving this over a number of years, it is hard to estimate the reliability of the driver.

You may be wondering what it is other than experience that determines your overall car insurance payment. Companies also take in to account the engine size and safety features of the car being driven. If the car is less secure in the scenario of a potential accident, then it is more likely to be increasingly damaged – which means insurers have to fish more money out of their own pockets for repair costs. Remember: they need to make a profit from somewhere, so premiums and excess rates are normally raised if this is the case.

Before settling with a final decision, you must lastly consider the type of coverage your vehicle requires, be it fully comprehensive, covering everything from theft to fire, or third party. If another driver will be using your car, it is important that the insurance company is aware of this.

In conclusion, it appears that choosing the best possible car insurance company for your vehicle could be more difficult than originally anticipated. Whatever is that you are looking for, remember the importance of safe and sensible driving, as it is the most significant way of keeping costs down in the long run.

Futher Reading:

1. What to do after an accident.

2. Tips for Saving on Car Insurance

3. Which Extras can I add onto my Car Insurance Policy?

4. Making an Insurance Claim

 

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