Car Insurance is one of the safest ways to make sure that your valuables are well taken of. There are three types of insurance, namely third party, third party fire and theft and lastly and comprehensive cover.
Let us look more into these types of car insurance:
Comprehensive insurance; it is the most costly out of the other two covers. It covers quite a lot. Firstly it covers you whether you are responsible for the accident or not. It also takes care of the third party costs. But then all this excludes the excess payment that is paid separately. In a situation whereby your car is stolen, it is there to replace your car.
Since it is the most expensive it would be insensitive for them not to offer extras. In cases of emergency and your car breaks down the tow truck that comes to get your car is part of extras as you don’t have to pay for it. The other extra that is available is the courtesy car. This is the car that belongs to the insurance company. It is a car available for you in times like these.
Third party fire and theft insurance; this type of insurance only covers you in cases of fire and theft. If your car is stolen or destroyed by fire the insurance company covers that. The cost is lower compared to comprehensive but it is costly compared to the third party. With this cover, extras depend on the insurance company. It is not obvious that they offer extras.
Third party insurance; this insurance only covers other cars. Which is one of the cheapest covers out of the other two.
Why it is important to have adequate information about your insurance company
It is always important to have the necessary information about your service provider. Understanding the terms and conditions is a must do. This is because there are some services that your insurance company cannot provide. For instance, depending on the company if you are to travel outside South Africa you are required to get a certificate from your insurance broker that indicates you have cover for the car.
So anything that might happen to your car wherever you are it is covered by the insurerance company in South Africa. But again not all car insurance agencies cover that. Which is why to know what exactly the insurance of your choice covers and what it doesn’t. This is usually a process made available to customers that have comprehensive car insurance.
Cars are bound to depreciate with time. And definitely, car insurance companies do not cover for such damages. With comprehensive yes it does cover all the damages but the intentional damage is not covered by any cover whatsoever. So as a customer understand the organization and how it works as this will help you in the long run.
What are the factors considered when getting an insurance premium?
A number of things are looked into before one is given a premium. They just don’t hand over premiums to people. This is why you see that the amount charged on premiums differ and these are some of the factors that determine the premium.
Age; age is a major factor, in terms of calculating a premium. Apparently according to statistics age is a reflection of your experience as a driver. That is why teenagers have very expensive premiums. The reason this is so is that they are at more risk of being involved in car accidents than the older drivers because of lack of experience.
Type of car; the type of the car you drive can determine the cost of your premium. I know what most of you are think, they charge you based on what you can afford? No that is not the case. Let’s take your red mustang, for example, is involved in a car accident and the parts required to ensure that your car is in the good state are over the top.
Or are hard to find as they are only found in certain parts of the world, that is expensive to transport them and get them to come to South Africa. So because of such complications, it will cost the insurance company that is why your premium might be a bit costly.
Advancing your car will also increase your premium. In a case that you pimped up your car, it is now at a greater risk of getting stolen that is why your premium again has to be raised.
Location; this is divided into two; where you stay and where you usually go with your car. This factor will justify my point stated above that it is not really about the status. If you live in the suburb you are at a lesser risk of your car being hijacked unlike someone staying in a high-density suburb where stealing is the order of the day.
Also if you often travel to places where there is a higher theft rate it is definite that this will temper with your premium. Unlike a person who goes to places where there is a very low crime rate in terms of theft and things that might be a threat to your car.
Sex; whether you are female or male matters in car insurance. Statistics have managed to prove that most accidents on the roads are caused by males. It shows that they are reckless drivers as compared to women. Like mentioned above that the higher you are at risk of your car being damaged the higher your premium is. Women are said to be careful drivers and you find that their premiums are lower compared to men. That is why some opt to put a female on their insurance to lessen the cost.
Other offers to take into consideration when getting a car insurance
If you opt to get a higher excess then you are guaranteed to get a lower premium. But some other insurance companies make you a deal whereby you can increase your premium and not pay the excess. There are other situations where you give someone else your car to drive. But you also want to make sure that if anything happens to the car whilst someone else is driving it, it will still be taken care of. So what they do is offer an option to write down the people that might drive your car but then with some insurance companies, they don’t ask you to be specific. But will only cover again if anyone drives your car and in the process, it is damaged.[/vc_column_text][/vc_column][/vc_row]