The automotive insurance market in South Africa is one of the more difficult ones in which to operate. Since the government does not mandate that all drivers carry car insurance, most drivers end up going without it. Also, drivers there are some of the worst around. In fact, South Africa has often had the dubious honor of being ranked number one in both traffic injuries and fatalities.
This combination of a risky driving environment and the alarming number of uninsured drivers has led to high insurance premiums for responsible drivers looking for auto cover.
Comprehensive Cover provides the highest level of protection, and, so, is the most expensive. Its cover includes protection provided by the two lesser types of cover, Third Party and Third Party Fire and Theft. These cover you if you damage other peoples property in an accident or if someone is injured in an accident that is your fault (Third Party) and in the event your car is damaged by fire, theft or attempted theft (Third Party Fire and Theft). Comprehensive cover adds to this by covering damage to your vehicle, limited medical expenses and replacement of broken glass.
For the moment this may not mean a lot to you. But when you understand that each time you drive without a proper insurance cover, you put at risk your car, yourself, cargo and other road users. Can you afford to replace or get your vehicle repaired without insurance? In case you are involved in a car crash and you are at fault, can you meet the expenses to repair or replace somebody else car or property? What if your own motor vehicle gets stolen, hijacked or smashed up? If you cannot afford to meet these kinds of expenses from your own pocket, you definitely require insurance.
Now that you understand about the necessities of insurance, get details about the different options available, so you could lower your premiums.
One of the most influential factors is your driving record. If you have a spotty driving record, you will represent a greater risk to the insurance company, and your premiums will reflect that. Fortunately, if you keep and maintain a clean driving record, your premiums will start to go down. Drivers who already have a good driving record can receive discounts for each claim-free year.
When insuring a car, the a major factor is the type of vehicle. Higher risks are assigned to high performance vehicles. Also, insurance for luxury cars will cost more because they are more expensive to repair or replace.
Some insurances allow for lesser rates if you make your car more safe. Consider putting in a GPX or extra locks to hold down insurance costs.
As you start to look into the available insurance alternatives, you will find that a price and policy comparison is simplest to do on the Internet. If you purchase a policy online, you may even qualify for a discount. But remember that the lowest cost insurance is not always the best one to choose. You should try to locate insurance that fulfills your needs and is affordable.
Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za. South Arica’s leading car and vechile portal, which provides cover for all car and vechile types.
Tags: automotive, car insurance, cars, Finance, insurance, money, Vehicle Insurance