Article by Graham McKenzie
The vehicle you have or will purchase is one of your largest purchases you will ever make, next to buying a house.
You never really thought of it as that big of an investment did you, but the fact is that it really is and therefore you need to consider your insurance options seriously? Statistics prove that an average homeowner will switch homes two to three times throughout a lifetime, while an average car owner will switch at least ten times, making your car and its insurance extraordinarily important.
The law requires that every car on the road is insured. Basic insurance or compulsory insurance only covers any other cars for damage and repairs in an accident that is defined as your fault. If your car is also damaged, the costs will come out of your own pocket.
Most people who have owned a car at one time or another are well aware of the minor details surrounding car insurance, which doesn’t hold true for first time car owners.
Buying a car for the first time is a big step in a man or woman’s life. However owning a car also comes with some degree of risk and more expenses, and it is therefore better to be safe than sorry when it comes to making the right choices about car insurance.
If you do not have comprehensive insurance when an accident occurs, you’re left with two options. Fix the damages if applicable, buy a new car, or go without one.
However, if you have the common sense to take out comprehensive coverage, your vehicle is protected under several forms of damage and even theft.
Insurance premiums are calculated on an annual basis, and should run at around 6% of the replacement value of your car.
Insurance premiums are calculated on an annual basis, and should run at around 6% of the replacement value of your car. A lot of people will gladly cover that amount to insure much stronger protection from the insurance company.
Comprehensive car insurance will cover anything from accidents where you are at fault, to accidents where no one but yourself was involved, or cases of theft. It’s very important to cover yourself from damages incurred via theft.
Not taking out comprehensive insurance is a disaster waiting to happen. If you really have any wits, you will understand the small annual insurance premium is well worth the expense.
Graham McKenzie is the content Syndication Manager at Insurance123.co.za South Africans leading car insurance information portal.
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