Buying auto insurance can be overwhelming, especially as you come across unfamiliar definitions, terms, coverages, and exclusions. However, it is not a good idea to drive your car without a policy. You don’t want to lose everything you acquired to a lawsuit should you be involved in a car crash you might cause. Having a good policy gives you peace of mind when you drive. Car insurance in South Africa can be quite expensive with policies having strict conditions because of the prevalence of unlicensed road usage and criminal activity. Thus, before you buy an auto insurance policy here, you should know what you are getting:
Golden Rules of Auto Insurance
Auto insurance is a contract in which a provider assumes financial responsibility for any loss you may incur through theft or damage to your car. But, you need to review your policy and the schedule, as well as ensure you understand all the clauses.
When you purchase a policy, you purchase a promise from the provider. You need to be sure of the particular circumstances the promise is referring to and what you will get from your coverage. Also, ensure you keep the promise you make. When you purchase a policy, you provide Miway and other insurance companies with many personal details like your habits and how you will use the car. Giving wrong information will result in the provider not holding up their promise.
Insurers in South Africa consider a lot of factors that may impact the risk to them of needing to pay out a claim. Expect to pay more for extensive insurance coverage. Also, the kind of vehicle you want to insure will influence your premiums. Some cars tend to cost more to repair or replace than others while certain cars are prone to theft.
Another factor that can influence the cost of your monthly premium is your car’s age. An older car may cost less to replace; however, it can be hard to get part for it. Also, it is generally more at risk of failing. Where you live and store your car when not in use will also affect your policy.
Reasons to Purchase a Car Insurance Policy
Hijackings of vehicles and road accidents are prevalent in South Africa. Over the years, the repair costs have increased significantly. Because of the increase in car theft, collisions, and repair costs, insurance providers have to recalculate the risk of their policyholders. Without insurance, a car owner has to cover the cost of car repairs or purchase a new car when it’s significantly damaged.