Your Quick and Easy Guide to Car Insurance
How can something, such as car insurance, be so simple yet extremely confusing. Do not worry; you are not the only one who feels this way. Everyone knows that by owning a car, your priority is to get car insurance to ensure your vehicle against possible loss or damage.
Well, you have come to the right place. This guide will help you understand the various cover options you have, allowing you to pick the car insurance that is correctly suited for you.
Let’s look at the different cover types available,
- Third-Party Insurance
- Third-Party , fire and theft
- Comprehensive Insurance
These are the most common types of vehicle cover you can get. Insurance companies might have a variation of one of these core covers.
It would be best to look at your lifestyle and which particular cover would serve your needs the best. Please discuss the covers with your insurance broker as they will assist you in choosing the best cover for your vehicle.
Although there is no price associated with each type of insurance, they will be explained from least expensive to most costly.
Third-Party Insurance
Third-party insurance is the bare minimum cover available for your vehicle. Essentially this policy covers the persons who has suffered a loss or damages to their property or vehicle due to your actions and is now claiming against you For example, you failed to stop at a stop sign and turn in front of someone. You will now be held liable for the damages to the other persons vehicle.
Unfortunately, any damages to your vehicle will not be covered under this type of cover. With such limited protection, third party insurance is suitable for a car that is rarely on the road.
Third-Party, fire and theft
It is very similar to third party insurance cover, but with some added extras
If there was a fire to your vehicle, or if your vehicle was stolen or hijacked, this policy would in the event of a valid claim pay out the sum insured or retail value which ever is the lesser .As the name also refers, it still includes cover for third-party accident cover as explained above. Once again, any damages to your vehicle will not be covered under this type of cover due to an accident.
The only time your vehicle would be covered in the two policies listed above is when you are not at fault during the time of the accident. Your policy would still not pay for the damages to your vehicle but you would be able to institute a third party claim against the other persons insurance who caused an accident. You would have to pay your excess amount before any repairs can take place, but Rodel 4U will help you get your excess back if you are not found liable.
Comprehensive Insurance
Comprehensive car insurance covers you for basically everything, except negligence. It is the best type of coverage to have if you are on the road every single day. For example, if you are involved in an accident, whether you caused the accident or not. Your insurance company will in the event of a valid claim, repair your vehicle or in a total loss, pay out to the value of the sum insured or retail value which ever is the lesser.
This type of insurance also covers instances where a collision has not occurred. For example, your vehicle gets stolen / hijacked, or a natural disaster causes damages to your car, you will be covered regardless.
Although this is the best type of insurance you can purchase, it is also the most expensive. There are additional benefits which you can choose to have, should you wish, like care hire.
It would be advisable to look at the following when choosing the right car insurance for you:
- Budget
- Coverage
- Lifestyle
- Excess
Taking into consideration these four factors, you will be able to determine the best policy for your needs. If you have a limited budget, either the first or second insurance option is more suitable. Please remember that if your vehicle is financed and not paid up as yet, you must take out full comprehensive insurance.
This part is a balancing act due to the number of considerations. You must get the right coverage for the right amount. Everyone always wants more for less right.
This is available through individual brokers, allowing you to add a voluntary excess, thus lowering your premium. Take note that at the time of a loss or accident, you will have to pay the applicable excesses as shown in your policy schedule including the voluntary excess you have selected.
Take the time to understand each car insurance policy, ensuring you have read the fine print and understand the excesses applicable at the time of a claim. This includes the section on windscreen insurance as you need to know what to do to get a claim approved.
