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?
Lets commence by summarizing the types of insurance.In south africa, auto insurance coverage has three basic types.
The minimum cover is Third Party. This covers your liability (costs) if you damage someone elses personal property in an car accident. This includes other cars or structural property that may also be damaged.
You can add a minimum value by purchasing a Third Party Fire and Theft cover. That will cover the cost in the event of your car being damaged by or incase of theft.
Comprehensive cover is the one that is recommended for most South Africans. It has in it, Third Party Fire and Theft and also covers damage to your own vehicle in an accident that is deemed your fault. There is also an additional coverage in it which covers when you are driving someone else’s car.
Drivers working in South Africa can obtain vehicle insurance options that can address the unique needs of operating a vehicle in this area. Such options include motorcycle, off-road, comprehensive cover, and caravan cover.
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.
Safe drivers pay lower premiums. If your current carrier will not reward you for claim-free years, check for better rates with another company.
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.
Never think twice to have a negotiation. When an insurance company is looking to get your business then they will for sure for an extent work on your terms
Tom Martens is the content syndication coordinator for Carinsurancesa.co.za. South Aricas leading car insurance portal.
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February 16th, 2010 at 12:49 am
Be sure to ask your insurance company what other things you can do to lower your rates. For example, if getting a car alarm helps protect your vehicle from theft, it may also help lower your insurance rate as there will be less risk of auto theft. Car covers, additional auto warranties, and other added accessories can also help with rates, depending on the insurance company.