The current data indicates that around 65 percent of South African drivers are without auto insurance cover and this is really alarming situation against the remaining 35 percent drivers who have purchased the auto insurance cover. So, what are the reasons responsible for the people not to make at least minimum auto insurance 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. This covers your liability (costs) if you damage someone elses personal property in an automobile accident. This includes other vehicles 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 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 vehicle insurance options are designed to meet the needs of drivers operating in the unique South African driving environments. These include motorcycle cover, 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.
Start by shopping around and comparing quotes. It is easiest to research your options online, and you may also get a discount if you purchase your policy online depending on the company you decide to work with.
If you remain accident-free, you can expect to pay lower monthly premiums. If your current insurance provider does not offer discounts for safe driving, it might be time to shop around for better rates.
Examine your excess amount. The higher the excess, the lower the premium because you are responsible to pay the excess in the event of a claim. If you can afford it, raising your excess amount will help you save in the long run.
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.
Because most insurance companies often have minimum security requirements for vehicles that they secure, exceeding the minimums by adding security devices can result in 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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