Auto Car Insurance Quote – How it Works

What is car insurance?

Car insurance essentially protects you against financial loss if you have an accident. When you get a car insurance policy it’s a contract between you and the insurance company. You agree to pay a premium in exchange for the company paying for your losses.

How car insurance works:

Before you get car insurance, you must consider a variety of factors, such as:

  • The kind of car you drive
  • Your driving record
  • The amount of money you are willing to pay

You need to be clear about the type of car insurance cover you need. In South Africa you can get three main car insurance types:

  • Comprehensive cover- this is the most extensive type of cover and is also the most expensive type.
  • Third Party, Fire and Theft cover- this is a cheaper form of insurance and is similar to comprehensive cover except that you won’t get cover for any damage to your own vehicle if you get into an accident.
  • Third Party only cover- this cover is the most basic type you can get and it covers the costs associated with an accident with a third party.

The level of cover varies between insurance companies. As you compare quotes, ask as many questions as possible.

You need to make sure that you fully understand the terms of your policy before you sign.  Premiums calculated on quotes are dependent on a range of factors.

You need to start off by getting car insurance quotes from various insurance companies. As you assess these quotes you need to make sure that they are in line with your individual needs. You need to consider factors such as the price, how you can pay premiums and whether or not there are additional discounts you can get.


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