Types of Car Insurance in SA
The current data indicates that around 65 percent of South African drivers are without auto insurance cover and this is really alarming situation against the remaining 35 percent drivers who have purchased the auto insurance cover. So, what are the reasons responsible for the people not to make at least minimum auto insurance cover?
We will start with a look at the different types of insurance. There are three basic types of insurance in South Africa.
The minimum cover is Third Party. This covers your liability (costs) if you damage someone elses personal property in an car accident. This includes other cars or structural property that may also be damaged.
You also have the option of buying Third Party Fire and Theft which would cover incase of any damage to your vehicle by fire, theft or attempted theft.
Comprehensive cover is the one that is recommended for most South Africans. And the aAdvantage of comprehensive motor insurance is that it is unique as it covers the most South Africans including Third Party Fire and Theft. It also extends to cover the damages to your own or someone else’s car when you are driving it.
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.
Because South Africa is a high risk insurance environment, premiums can be high. But you can take some steps to lower your premiums.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.
Start by shopping around and comparing quotes. It is easiest to research your options online, and you may also get a discount if you purchase your policy online depending on the company you decide 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.
If you own an expensive or high performance vehicle, you will pay more for your premiums. These cars cost more to insure because they are considered a higher risk and are expensive to replace or repair. So when you car shop, keep in mind that your insurance premiums will add to the cost of owning the vehicle you choose.
Because most insurance companies often have minimum security requirements for vehicles that they secure, exceeding the minimums by adding security devices can result in a discounted premium.
If you live in a high crime area, your car is at greater risk for theft or hijacking. Consider moving to get lower premiums. You can also receive a discount if you park your car in a locked garage or behind locked gates overnight.
Don’t be afraid to negoiate a deal with your insurance company, because they are very interested in keeping your business and willing to work out a deal with you.
Tom Martens is the content syndication coordinator for Carinsurancesa.co.za. South Aricas leading car insurance portal.
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