The automotive insurance market in South Africa is one of the more difficult ones in which to operate. Since the government does not mandate that all drivers carry car insurance, most drivers end up going without it. Also, drivers there are some of the worst around. In fact, South Africa has often had the dubious honor of being ranked number one in both traffic injuries and fatalities.
This combination of a risky driving environment and the alarming number of uninsured drivers has led to high insurance premiums for responsible drivers looking for auto cover.
Comprehensive Cover provides the highest level of protection, and, so, is the most expensive. Its cover includes protection provided by the two lesser types of cover, Third Party and Third Party Fire and Theft. These cover you if you damage other peoples property in an accident or if someone is injured in an accident that is your fault (Third Party) and in the event your car is damaged by fire, theft or attempted theft (Third Party Fire and Theft). Comprehensive cover adds to this by covering damage to your vehicle, limited medical expenses and replacement of broken glass.
For the moment this may not mean a lot to you. But when you understand that each time you drive without a proper insurance cover, you put at risk your car, yourself, cargo and other road users. Can you afford to replace or get your vehicle repaired without insurance? In case you are involved in a car crash and you are at fault, can you meet the expenses to repair or replace somebody else car or property? What if your own motor vehicle gets stolen, hijacked or smashed up? If you cannot afford to meet these kinds of expenses from your own pocket, you definitely require insurance.
Since you are informed that insurance is needed, learning about lowering your premiums will take some time.
Your driving record is a major factor. Any violations that appear on your record will be a red flag to the insurance company, suggesting that you are a higher risk; therefore your premiums will be higher. In subsequent years, your premiums may decline if your driving record improves. Drivers with clean driving records may receive a discount for each year in which they do not file a claim.
The kind of car you drive also makes a difference. Expensive sports cars cost more to insure because accidents or thefts are more likely and repairs cost more.
Some insurances allow for lesser rates if you make your car more safe. Consider putting in a GPX or extra locks to hold down insurance costs.
Compare insurance rates by requesting quotes online. You will find the most competitive rates and may even receive a discount for purchasing online! Bear in mind that the lowest priced insurance policy does not always offer the best coverage. Evaluate your insurance needs and select the policy that covers you best while keeping your rates as low as possible.
Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za. South Arica’s leading car insurance portal, which helps people save on their car insurance.
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