All it takes is a mistake by another driver!
Car repair costs can be astronomically high. Don’t be left with covering all of the costs if damage happens to your vehicle.
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What is Car Insurance?
- In essence, car insurance is a policy that vehicle owners can purchase to protect them should an accident occur.
- Whether it’s your fault or the fault of another driver, car insurance is designed to drastically reduce the amount of costs that you would have to pay in the event of an accident.
- Instead, drivers pay what is known as an annual premium for the car insurance.
- This premium ensures that you are provided with full coverage.
- Depending on the accident or other vehicle damage that occurs, the insurance company can end up paying the majority or even all of the associated costs.
- This coverage extends to your physical health, the health of others in your vehicle and to any possessions within your car.
- Before entering into a contract for car insurance, it’s important that you pay strict attention to all of the details in order to ascertain under which circumstances the insurance company might not pay for damages.
Why Is Car Insurance Important?
- In the eventuality of an accident, you will be left with covering all of the costs if damage happens to your vehicle or if you experience theft.
- Without insurance, repair costs can be astronomically high. If you get into an accident without insurance, not only will you have to pay for all of the damage to your vehicle, you will also have to pay for any medical costs for the driver and passengers of the other vehicle.
- If the accident was the fault of the other driver, you will still have to go through a legal battle over any costs that you are attempting to claim from that driver if you had insurance, this would be completely covered.
- It’s important to note that, depending on the severity of the accident, you could end up spending much more after one accident than you would ever have to spend on insurance payments. Even if you’re the safest driver in the world, all it takes is a mistake by another driver on the road for an accident to occur.
Though car insurance can be quite expensive, it’s highly important if you are a car owner.
Many people are uninsured in South Africa, which estimates place at just below 70 percent of all drivers.
High accident rate, meaning there’s a good possibility that you’ll be in an accident at one time or another.
Types of Car Insurance
Fire and Theft insurance
Type of coverage that can be purchased for anyone looking to add theft and fire damage coverage to their policy.
Liability insurance
Extends towards coverage for injuries caused to drivers or passengers of other vehicles, as well as damage done to their vehicles.
Limited Cover insurance
Combines the previous two insurance types, but doesn't come with any coverage for damage done to yourself or the vehicle you were operating at the time of an accident.
There are four basic tiers of coverage ranging from moderate to full coverage
1
Agreed Value
This type of coverage denotes a specific agreement between you and the insurance company over the value of the vehicle and how much insurance should be provided. The final value is determined by several different factors, including the mileage, age and overall condition of the vehicle. This type of coverage is usually applied to vintage and older vehicles.
2
Market Value
Market value is moderate in value, as the exact market value of your vehicle will be calculated based on the mileage and a few other factors having to do with the vehicle. As such, if your vehicle needs hefty repairs, only the market value of the vehicle will be covered in expenses. Anything more and you will have to pay out of your own pocket.
3
Trade Value
Based on how much value the vehicle would have if a dealership bought it before being in an accident. This is somewhat less than the amount you would have to pay if you bought the car brand new. In many cases, this coverage is enough to cover all damages and costs.
4
Retail Value
This is based on how much you paid for the vehicle when purchasing it new. If the vehicle is totalled, you will receive that full amount in coverage. It’s important to note that retail value of a vehicle becomes lower with every passing year.
Additional Car Insurance Coverages That Are Available
MEDICAL PAYMENT COVERAGE
Cover any injuries you sustain even if riding in the vehicle of someone else
UNINSURED MOTORIST COVERAGE
Cover you in the event of an accident caused by a driver that is uninsured
EXTENDED COVERAGE
Offered for others that operates your vehicle
PROPERTY & BODILY DAMAGE LIABILITY
Damages done to your vehicle or injuries you experience are fully covered no matter who is at fault in the accident.
