Insurance for Your Car – A Simple Guide

Who need car insurance?

If you own a car you need car insurance. Not only will having car insurance give you peace of mind, but you can be assured of financial protection in the event of an accident or damage to your car or theft.

How does car insurance work?

You get a car insurance quote from an insurance company. The company will then provide you with financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could arise there from. Depending on the type of insurance type you opt for, it you may also get financial protection against theft. There is no “one-size-fits-all” approach. Each individual has unique needs.

Where can you get car insurance?

In South Africa there is a wide array of car insurance companies. You can approach them directly or through a broker. You can also get it online.

Factors that you need to consider when getting car insurance:

What type of cover you need

This is important because it determines how much you need to pay in premiums.

Who needs to be covered on your policy

If you add another driver to your policy, this could have an effect on your premiums.

How much you can afford

This is an important factor to consider because it essentially drives the type of insurance you get.

The excess amount you’re willing to pay

If you are willing to pay a higher excess amount this may lower your premiums.

The type of vehicle you own

The more expensive your car, the higher risk you pose to insurance companies so you will pay higher premiums.

How you can save:

  • Shop around and ensure that you compare more than three quotes
  • Consider your excess amount
  • Consider driving a low-risk car
  • Add an experienced driver to your policy

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