Types of Car Insurance in SA
Approximately 65 percent of South African drivers do not have auto insurance cover. That is an alarming statistics for the 35 percent of those who do. So, what is keeping that 65 percent from making the responsible decision and purchasing at least the minimum cover?
We will start with a look at the different types of insurance. There are three basic types of insurance in South Africa.
The minimum cover is Third Party. If anyone damage other's personal property in an automobile accident it covers the liability (costs). This includes other vehicles or structural property that may also be damaged and also the minimum cover is third party
You can add to the minimum by purchasing Third Party Fire and Theft. This will cover you in the event that your vehicle is damaged by fire, theft or attempted theft.
Comprehensive Cover is the recommended cover for most South Africans. It includes Third Party Fire and Theft and also covers damage to your own vehicle in an accident that is deemed your fault. It also includes additional coverage such as extending cover when you drive someone elses car.
Other insurnce schemes mainly consider the drivers in South Africa.they may be comprehensive covers,bike or caravan also.
Because South Africa is a high risk insurance environment, premiums can be high. But you can take some steps to lower your premiums.South Africa is often a world leader in traffic injuries and fatalities and the roads are becoming increasingly dangerous. Car theft and hijackings are also all too common.
When deciding on a policy, it's best to shop and compare quotes first. The best way to do this is by looking online which may enable you to get a lower price according to the company you want to work with.
Drive safe and save on your premiums. Claim-free years should earn you rewards from your carrier. If not, scout for companies that would offer value rates to you.
During the purchase of insurance, you should check the maximum amount that you are going to paid if claimed. If this excess amount is high, then premium will also be high. Selection of maximum amount depends on you. It gives you benefit on long run, if you can afford higher excess amount.
If you own an expensive or high performance vehicle, you will pay more for your premiums. These cars cost more to insure because they are considered a higher risk and are expensive to replace or repair. So when you car shop, keep in mind that your insurance premiums will add to the cost of owning the vehicle you choose.
Insurance companies often have minimum security requirements for the vehicles it secures, so if you add security devices that exceed the minimums, you could receive a discounted premium.
If you live in a high crime area, your car is at greater risk for theft or hijacking. Consider moving to get lower premiums. You can also receive a discount if you park your car in a locked garage or behind locked gates overnight.
Most of all, dont be afraid to negotiate. An insurance company that is interested in your business will be willing to work with you in order to earn your business.
Tom Martens is the content syndication coordinator for Carinsurancesa.co.za. South Aricas leading car insurance portal.
