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Car Insurance
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Car insurance is one of the most important types of insurance for the motorist to have. There are a number of reasons for this. Vehicles cost a great deal these days, whether you have bought a brand new top-of-the range leisure vehicle or a modest runabout. Like it or not, a vehicle is one of the biggest assets owned by any individual and therefore you need to cover against loss or damage of the vehicle. Another reason is that South Africa has an unusually high number of car thefts, hijacking and vehicle accidents. Therefore, vehicle ownership is associated with a high risk factor and so cover is necessary.

Yet another reason that car insurance is a basic necessity for vehicle owners is that vehicle finance from a bank is impossible to obtain unless you take out insurance to cover the possible loss of car payments in the event of your death. Yet another reason is the third party aspect of the accident risk. If you were to drive into the back of another car, for instance, and it was clearly due to your negligence, you would have to pay out of your own pocket for the damage if you did not have car insurance. The third party insurance aspect of car insurance covers you against this too, and also in the event of injuries to people in such accidents.

The replacement cost of vehicles these days is a vexed question among car owners. If you own an old car (over ten years old) it is difficult to get car insurance at all for it, although some insurance companies do offer so-called “old banger” insurance. Yet it is important to note that the payout in the event of the theft or the write-off of the vehicle would not bear any relation to the replacement value of the vehicle. Even old vehicles in good condition fetch more than an insurance company would pay out if it were insured. So think twice before trying to insure an old vehicle. However, third party insurance is still vital. It would be sad if you were run into the back of a Rolls Royce, for instance, and had to pay for repairs out of your pocket.

Probably the most useful advice anyone can give you as regards buying a car insurance is to shop around until you find the best deal. Do not let your vehicle financier dragoon you into the policy of their choice either. The choice is yours and yours entirely. There are wonderful car insurance deals to be had, if only you take the time to find them. Get as many quotes in writing as you can, and make sure you compare apples with apples. In other words, give each insurance company or car insurance brokerage exactly the same brief and make sure they understand your requirements. Never buy a policy that you do not understand in its entirety and make sure there is a Help Line or online support so that you can keep tabs on your policy. You should review your policy annually and shop around for better deals again. The car insurance world is continually developing, so better deals with more appropriate deals might be available.

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