The South African car insurance market has some unique challenges. For the most part, South Africans have the choice of buying car insurance or not, so that translates into a majority of the country’s drivers operating uninsured vehicles. South Africa is also a very risky place to drive. It often leads the world in the number of traffic injuries and deaths each year.
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.
Although it is the most costly form of insurance cover, Comprehensive Cover provides the highest form of protection of all the other insurance covers. The cover includes protection not provided by the other two other forms of cover, Third Party and Third Party Fire and Theft. Third Party covers you in case there is damage another persons property in an accident or a person is injured in a mishap that you are responsible for. Third Party Fire and Theft covers you when your vehicle is destroyed by fire or is stolen. Comprehensive Cover on the other hand is an all inclusive cover. It covers damage to your car, medical expenses and replacement of broken glass
This may not mean much to you right now. But when you realize that each time you get behind the wheel, you take the risk of damage to your car, to yourself, and to other people and property into your own hands, driving without insurance is really a frightening idea. Can you afford to repair or replace your car if you are in an accident? If you cause an accident, can you afford to repair or replace someone else car or property? What if your car is stolen, hijacked or vandalized? If you cant afford to pay for these things out of your pocket, you need insurance.
Since you are informed that insurance is needed, learning about lowering your premiums will take some time.
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.
The next driving factor is the type of vehicle you’re insuring. High performance vehicles are considered higher risk. High-dollar models are also more expensive to insure because they are more costly to replace or repair.
Adopt safety measures like gear locks or global tracking applications and pay less on your premiums. Excel by exceeding your policy demands and claim discounts on your policy.
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 Insurance portal.
Tags: Car Insurance, finance, insurance