Car Insurance – Everything You Have To Know Today

July 9, 2017 · Posted in General Articles on Car Insurance 

Car insurance is legal in almost every country in the world, whether it is regulated, is another story. Because of the legalities of driving on public roads, a person wanting to purchase a policy must therefore have a clear understanding of what it exactly entails.

What it essentially does, is provide you with cover so that you would not be left with an enormous bill to settle if you were involved in an accident. We all know how expensive it is to get proper panel beating done and to have bumpers and lights replaced is nearly as costly as the car itself.

Because of this, the insurance companies offer us protection at market related premiums:

The most common cover – and in most instances is obligatory to have, is a Third Party insurance package. This basically means that your policy will cover those that are involved in the accident like; occupants of the other vehicle, pedestrians, and passengers in your vehicle.

Added to this policy, you could opt to have a Third Party, Fire and Theft cover. Here you will be protected in case of damage by fire, or damage by theft and outright theft as well.

By far the most popular and which offers the most cover, is Comprehensive Car Insurance. It includes the above two options and adds on protection over windscreen replacement, personal effects in the car like clothing for example. Then there is also natural causes like the weather and some will include riots and such. So depending on your personal needs, the insurer will offer a package which covers just that.

The premiums are varied from provider to provider, but the essential aspects which influences the amount, will be ascertained by asking you questions like; your residential address, your work address and how old the car is. You see the higher the risk to them, the higher the premium you will pay. If you have a good track record – no parking or speeding tickets, or if you have never raised a claim before, will also determine the amount of premium you would have to pay.

Many insurance providers use a no-claims bonus to sell their product. This can be very useful for clients as a reward system like this can bring down ones premiums to an affordable level. Some companies will even offer you a pay-out reward depending on how well you manage your policy.

Important to a policy holder would be the amount of excess one has to pay when repair to ones car becomes necessary. Here companies might want a different amount per item. For instance, a certain amount will be stipulated for windscreen replacement, or panel beating. Ensure that you know what your excess is for various claims, so that you are not caught off guard when the time comes. In today’s fast pace life and tension on our roads, one cannot be without car insurance, it has become a necessity for all drivers.


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