Car Insurance

Car insurance, or otherwise know as motor vehicle insurance, provides financial protection to the consumer should the event for which the insurance was taken out actually happens. The most common events which are covered under this type of insurance are accident, theft, fire and third party.

Car Insurance companies would require a premium to be collected from the consumer, for which they in return will provide financial cover should the vehicle be stolen, or involved in an accident. The amount for which the car is insured is normally one of the following values: Retail price (the price if bought from a retail dealer), Trade Value (the value which is normally offered to the client should the vehicle be traded in on another vehicle), or Market Value (this is the Retail Value and the Trade Value added together and divided by two). Which one you choose should be determined by how much of a financial safety net you have already built for yourself.

How much you may pay for your car insurance cover is determined by many factors. The most obvious is the value of the vehicle, but other factors like the drivers age, the area in which the vehicle is kept over night as well as the security fitted to the vehicle and the security of the overnight parking also play a major role.

One of the most reasons why Car Insurance companies do not pay out claims is for non-disclosure, so it is very important to ensure you answer all their questions accurately and honestly. The last thing you want to happen is for your car to be stolen and you have been paying monthly premiums only to find out they won’t pay because you left something out. Every questions asked normally has a direct impact on the premium, and so consumers are always tempted to change them to get a lower premium. But a lower premium is not always the best thing. Full disclosure and the right cover at the right price is what you should be on the look out for.

South African Car Insurance Companies