Insurance and Credit

Roughly 65 percent of South African motorists don’t have car insurance. That is extremely worrying for the minority who do. What is preventing all these people from assuming responsibility and buying at least the basic cover?

We will start with a look at the different types of insurance. There are three basic types of insurance in South Africa.

The minimum cover is Third Party. If anyone damage other’s personal property in an automobile accident it covers the liability (costs). This includes other vehicles or structural property that may also be damaged and also the minimum cover is third party

You also have the option of buying Third Party Fire and Theft which would cover incase of any damage to your vehicle by fire, theft or attempted theft.

Comprehensive Cover is the recommended cover for most South Africans. It includes Third Party Fire and Theft and also covers damage to your own vehicle in an accident that is deemed your fault. It also includes additional coverage such as extending cover when you drive someone elses car.

Other vehicle insurance options are designed to meet the needs of drivers operating in the unique South African driving environments. These include motorcycle cover, off-road comprehensive cover, and caravan cover.

Because South Africa is a high risk insurance environment, premiums can be high. But you can take some steps to lower your premiums.South Africa is often a world leader in traffic injuries and fatalities and the roads are becoming increasingly dangerous. Car theft and hijackings are also all too common.

Begin by looking around and comparing quotes. It is much easier to research your many options via web. You could also possibly get discounts if you purchase your policy via the web if the company you want to work with enables this.

Drive safe and save on your premiums. Claim-free years should earn you rewards from your carrier. If not, scout for companies that would offer value rates to you.

During the purchase of insurance, you should check the maximum amount that you are going to paid if claimed. If this excess amount is high, then premium will also be high. Selection of maximum amount depends on you. It gives you benefit on long run, if you can afford higher excess amount.

Are you an owner of an expensive or high performance vehicle, if so you will end up paying more for premiums. These luxury vehicles attract high rates to insure as it is expensive to replace or repair. Keep in mind when buying a car that insurance premiums adds to the value of owning it.

Because most insurance companies often have minimum security requirements for vehicles that they secure, exceeding the minimums by adding security devices can result in a discounted premium.

If you live in a high crime area, your car is at greater risk for theft or hijacking. Consider moving to get lower premiums. You can also receive a discount if you park your car in a locked garage or behind locked gates overnight.

Don’t be afraid to negoiate a deal with your insurance company, because they are very interested in keeping your business and willing to work out a deal with you.

From the urban to the off-road, drivers can find suitable insurance coverage to meet their specific needs. Car insurers are constantly designing products for South Africa’s unique driving environments.

Most South Africans should have Comprehensive Cover. In reality, 65 percent of auto owners in South Africa do not have any coverage. This is a shocking number especially in light of the rising rates of fatalities and injuries on South Africa’s roads. If you don’t have insurance, take stock of your situation. Can you afford to repair or replace your car in the event of an accident? Can you afford to repair or replace someone else’s car or property in the event of an accident that is your fault? What if your car is stolen, hijacked or vandalized? Owning and driving a car is risky business – that’s why you need car insurance.

Third Party Fire and Theft Cover are other options available, which will pay to repair or replace your vehicle if it is damaged or destroyed by fire or attempts to steal it. Third Party Only will cover you if an accident that is your fault damages other people’s property.

Motorcycling is a widely accepted form of both transportation and sport. From America, to South Africa, communities of avid motorcyclists can be found. And just as in the operation of a car, a motorcyclist needs insurance to protect themselves against loss or damage as well. Thankfully there are policies designed specifically for this growing need.

Because the great outdoors is such a large part of South African living, several products have been developed for the risks associated with outdoor travel. For off-road enthusiasts, there is Off-Road Comprehensive cover designed to cover the risks in this unique and unpredictable driving environment.

If you’re considering car insurance for the fist time, you may be surprised by how expensive premiums can be . Several factors drive these rates, and you have a certain amount of control on how they affect your premium.

The first factor, one you can’t really do anything about, is your age and driving record. Fortunately, the passage of time has a great effect on this factor. Younger drivers are considered a higher risk, and therefore pay higher premiums. If you have no driving history, or if your history includes accidents or dangerous driving habits, your premiums will be higher. But, as you age and build a better driving history, your premiums will reflect the lower risk.

The value of your vehicle is another important consideration. Expensive vehicles are more expensive to insure, as are high performance vehicles.

Another way to reduce your premiums is to increase your safety measures. Some companies have minimum safety requirements, but will discount your premiums if you exceed these minimums. Also consider where you keep your vehicle. If your car is parked in a high-crime area or even on the street overnight, you’ll pay for that risk.

Take the time to research the different types of insurance and how they apply to your situation. As you shop, remember that the cheapest insurance is not always the best. Make sure the policy you choose meets your needs at a price you can afford.

You’ve just received your auto insurance renewal notice from your insurance agent and are trying to determine how you are going to fit the new premium into a shrinking family budget. You’ve seen all of the ads on the television about discount auto insurance is it time to look into them and see just how much you can save?

Liability, Collision and Comprehensive are the three fundamental types of auto insurance. If the consumer used a loan to acquire the vehicle, then the holder of the loan will require that all three cover the vehicle. This is what is known as full coverage. Liability covers any damage done by the vehicle. Collision covers any damage done to the vehicle by another vehicle. Comprehensive covers damage done by fire or theft of the vehicle. In the United States, most states require that liability coverage be obtained in order to register the vehicle. If the vehicle is owned without lien, the owner of the vehicle may choose to have only liability coverage. This however may cause the owner of the vehicle to shoulder the entire cost of repairing the vehicle when it is involved in an accident. In addition to the three fundamental types of coverage additional coverage may be obtained from most insurance companies at a greater premium paid.

The traditional method of purchasing auto insurance was either through a local agent or broker. The difference between an agent and a broker is that the agent works directly for a specific insurance company. A broker can represent several companies in the coverage that they offer. These agents and brokers are paid by the insurance companies for the policies that they write and renew. In many cases discounts can be obtained from these agents and brokers for combining policies with a specific company. An example of this is the combination of insurance for the home and for the auto. The agent or broker works to develop the best policy for the individual. A relationship is formed which insures that the insurance company will pay the agent or broker when the policy is renewed with the agent or broker.

If a consumer was interested in changing coverage or agents, the process was often long and involved. Multiple phone calls had to be made to various agencies and repetitive answers had to be provided. This time consuming and often frustrating process dissuaded many from changing companies and or agents. It was often difficult for the consumer to compare policies and to insure that the “fine print” on all of the policies was the same.

The growth of the Internet in the late 20th century provided insurance companies a medium to both attract new business and reduce costs. The insurance companies provided a vehicle by which the consumer could get quotes on line. This provided a greater market base for the insurance companies and allowed the insurance companies to offer discount auto insurance rates. This reduction in rates often reflected the cost savings of not having to pay commissions to agents or brokers. Another factor in the discount auto insurance rate was that the insurer could have a larger base of people from which to collect premiums, which allowed lower rates to be offered.

All insurance policies are unique and while offer the same coverage may have differences. These differences often called exclusions allow the insurance company to specify what they will not cover in case of an accident. In many cases these exclusions are included as “fine print” which the purchaser may or may not read. A consumer may in evaluating an auto insurance policy can potentially miss an exclusion that could potentially cost them money in the long run.

When purchasing discount auto insurance, there are several factors that the consumer must be aware of. The first and foremost is that auto insurance is the same as any other product purchased. There are few people who will choose the lowest priced product, no matter what the product is. A recognized brand name often means a great deal when a product is purchased. If given the choice of a Sony plasma television and an ABC plasma television, many will choose the Sony at a greater cost over the ABC. This brand name acceptance often reflects the quality of product even if the cost is higher. Large nationally recognized auto insurance companies often have higher rates simply because they provide better more efficient customer service. If a claim is made to a smaller less efficient auto insurance company the claim may not be settled without extensive correspondence with that company.

Costs are constantly rising often outpacing gains in income. Discount auto insurance is available from many suppliers. When purchasing any discount auto insurance without the aid and assistance of an insurance professional it is required that the consumer carefully evaluate both the policy and the company that is issuing the policy. If the company that is issuing the discount auto insurance is not familiar to the consumer it is recommended that the consumer contact the Better Business Bureau to familiarize themselves with that company. Should the consumer doubt their ability to determine which policy and or company is the right one for them, an insurance professional should be consulted. In many cases the insurance professional can offer comparable rates to the discount auto insurance available on line, which insures that the consumer gets the best coverage for their money.