Understanding How To Buy Auto Insurance
When the time comes to purchase a car insurance policy, it can be confusing trying to decipher the terms and policy inclusions. Unless you know what you are looking at, it will be very difficult to determine which policy best meets your needs. The last thing you want to do is pay more than you need to for coverage that is less than your ideal. Read on for some insights into the world of vehicle insurance policies and how they can work to your benefit.
When you receive a quote for automobile insurance, you will likely be quoted rates for the amount of coverage that the insurance agency wants you to buy. However, you should be aware that this is not always in your best interest. They will almost always try to get you to buy more than what you actually need. The first thing to consider in determining how much coverage you need to is look at the value of your car. Even if your car is totaled in an accident, your insurance company will only pay you the value of your car – so why buy more coverage than your car is worth? Don’t fall for this trap. Save the money and only purchase what you really need.
Liability insurance covers the other car if you have an accident and you are at fault. While this insurance is not required by law, it protects you from being taken to court in the event of a collision which makes sense on South Africa’s volatile roads. Liability insurance is the one place where you do not want to pinch pennies, as you could easily damage a car that is worth much more than your own.
Property damage can cover anything from a vehicle to exterior surfaces such as buildings, pavements or any personal property. This could include bicycles or city property like stop signs and utility poles. Insurance for property damage can also include items within a vehicle, such as computers or cameras.
Be aware that many people drive without car insurance, regardless of how irresponsible this is. In South Africa, between 65 and 70 percent of the drivers out there are not insured. This means that you could easily be involved in an accident that is not your fault where the other driver does not have the coverage to address any damages. If this happens, you will have the burden of trying to force this person to pay for the damage to your vehicle. Chances will be high that they do not have the funds to pay. For this reason, it would be wise for you to purchase uninsured motorist coverage. This will cover your vehicle if you get hit by someone who does not have insurance. The cost for this coverage is minimal compared to the benefits, so be sure to include this coverage, even if the insurance company does not actively recommend it.
Understanding these basic things about vehicle insurance can make a big difference in the coverage you end up having. Be informed and then relax, knowing that you are covered.