A basic definition of car insurance is that it is insurance purchased for cars and other road vehicles. This type of insurance provides financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could arise there from. Car insurance may also provide cover for theft and damage to the vehicle.
Car insurance also provides benefits to survivors when an accident results in death. It also covers you for incidents such as stolen cars or hijacking. Vandalism is also covered.
Research has shown that insurance is often a grudge purchase for many people. Having car insurance is essential however.
In a country like South Africa, where the conditions of roads isn’t always the best , having car insurance will provide you with the right cover in case your car is damaged because of potholes. Crime statistics are alarming in the country, so having car insurance gives you the cover you need in case your car is stolen or if you are hijacked.
By having car insurance, you are protected from the financial liability and you have the peace of mind knowing that you are covered should the unexpected occur.
Good reasons for having car insurance:
Preservation for vehicle value
If you buy your car through the bank or another financial institution you will be required to get the most comprehensive form of car insurance. This is because the bank will want to protect its asset.
You can save more by bundling your home insurance and car insurance with the same company
Many insurance providers are giving their clients more value for money by giving them the option of multi-policies.
You get insulation from huge expenses
By getting car insurance you have the peace of mind knowing that the insurance covers the bills of vehicle repairs due to damage caused in an accident