Points Any Car Insurance Newbie Consumer Should Know
Every person needs car insurance! The reality is that the moment we start our vehicle’s engines, we are vulnerable to something going wrong. It is possible to turn into the street, swerve out for the neighbour’s doggy that got out again and drive into a telephone pole. The truck in front of you can be leaking oil, you can try to brake and slide into oncoming traffic. And then of course you can come out of the shopping centre one afternoon and realize that your car is not where you left it!
If you are attempting to get a car insurance quote for the first time, there are a couple of insurance terms and lingo that you ought to familiarize yourself with – just to make double sure that you end up deciding on the correct policy to suit your needs.
The first question you should think about is for which purpose you mainly use your car. Do you use your car for private purposes (general day to day traveling, including driving to the office and back) or do you mostly use your car for business purposes? Several insurance companies also provide a policy for professional use (similar to business use, but with one or two differences) – make sure that you choose the right policy.
Secondly, you must know that there are different types of motor insurance cover. Would you like to be covered in all circumstances, including accidents, theft, a hijacking and even flood damage? Or would you rather go with a more affordable option with restricted cover such as a third party insurance policy? Remember that you pay for what you get, which means more extensive your cover, the greater your month-to-month premium. This certainly does however not mean that you must choose the cheapest policy with the least coverage on the market! Assess your requirements and make an informed selection accordingly.
Finally, make certain you know very well what the excess amount will be if you wish to put in a claim. Let’s say for example that the damage to your vehicle add up to R30000. If your excess amount is R3000, you will pay that R3000 and your insurance company will take care of the remaining R27000. It is feasible to opt for a greater voluntary excess and that way pay a reduced month-to-month premium. Just keep in mind that in this case it’s possible that your excess value is greater than your claim value! For instance, if your excess is R5000 and you only need to replace a cracked windscreen at R3000, you will still need to pay R5000 if you opt to claim this from the insurance. (Yes, that would be a dumb move to make, but it’s clearly to demonstrate the point)
Being underinsured is basically just as bad as not being insured at all! Where will you suddenly found a lump sum of money to pay for a new car if yours is a total write-off? Ensure that you are adequately covered and that you realize what is included and what is excluded from your policy.
Drive safe!
For more information on car insurance quote visit our site on http://www.car-insurance-quote.co.za
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