Your car, bike, caravan or vehicle insurance will do more than just make sure you can still get from A to B.
Your short-term vehicle insurance will help you replace your car if it’s stolen or damaged beyond repair. It’ll give you roadside assistance to better manage how you use your car, even if you never end up making a claim on the motor vehicle in the future. But most importantly, it’ll help you keep your job (most people need to drive to work), take care of your family, drop your kids off at school, survive huge accident bills without blinking and keep your independent form of transportation.
If you can’t be without your car, you can’t be without car insurance! This advice is brought to you by CarInsuranceCheck.co.za
Car Insurance CompaniesSouth African motorists are seeing car insurance as the needed evil. Even if you have bought the car with hard cash and are one of the most cautious drivers; you are still at huge risk when driving your car without any insurance. Still one of the biggest benefits of having motor insurance is that you can put your mind at ease, knowing that you will be covered if you are involved in an accident or if you are a victim of theft and vandalism.
The car insurance trade has become a serious business in South Africa as people are getting aware of how important it is to cover your vehicle and other people’s vehicles in the case of accidents, theft or damage. We have seen that the average price for vehicle insurance has raised quite a lot over the last few years. This is the result of the high risks involved in South Africa due to the high crime levels and unlicensed cars on the road. In the United Kingdom is it compulsory for a car owner to have motor insurance. The UK government have implemented strict rules on this.
The guys in the insurance trade have stated that one of the biggest concerns is consumer education on insurance products in South Africa. A portion of the complaints which the Ombudsman receives are due to the lack of knowledge of the insurance business.
Before I explain the different ways on how you as a South African road user can save money on your monthly car insurance premiums, is it important that you understand the basics of the trade.
You have to know that car insurance is a contract between you and an insurer which states that the insurer assumes that they have financial responsibility for any losses due to damages and/or theft that may occur to your car. The contract will state that you will have to pay a monthly fee, which is called your premium, and the amount will be evaluated according to the risk you appose to them. The important thing is that you will have to make sure that you understand the terminology of the insurance trade, term and conditions before you sign any contract. You should also make sure that you can afford the insurance. You will be penalised if you cannot adhere to the payment schemes of the contract.
There are three golden rules when it comes to car insurance and they are:
- You have to be aware of the promise, which you are buying into: By investing in car insurance, you are actually investing in a promise. The insurer will promise you to take financial responsibilities for some circumstances that may never even occur. It is your duty to make sure that you understand and are aware of these circumstances.
You will have to keep the promise: You will have to know that if you buy car insurance then you will have to give the insurer numerous personal information and habits about you. You have to be absolutely honest about the information, if they find that you haven’t been completely honest then they can refuse to pay for anything that you have claimed.
- The job of the insurer is to only pay what you are due, and not anything more.
- It is of utmost importance that you understand why you are paying the evaluated premium per month to have cover for your car. If your car is damaged in an accident or stolen, then the insurer pays the amount which is based on a few factors.
These are some of the factors which the insurer will take into account:
- The insurer will take into account the make and model of your car. They will also take the condition and the value of the insured car into account.
- When you file a claim due to damages then the insurer will first check if the quote is reasonable to repair your car.
- If the damages to repair your car exceed 70% of the value of the car then they will consider it as a write off and only pay out the average amount between the retail and market value of the car.
- You should also know that if the insurer decides to pay only the value market of your car then you would most probably not be able to get the money for the same type of car.