What is car insurance?
Car insurance provides protection against the dangers of the road. Car insurance is a type of insurance coverage for automobiles, providing protection against liability from accident or injury to third parties, damages done to your car by a third party, and damage due to vandalism. There are multiple types of auto insurance policies available, often completing each other in covering different aspects of risk associated with cars on the road.
The most basic and common type is third-party car insurance (sometimes called “liability coverage”). This provides compensation for injuries caused by an auto accident to people who are usually not at fault in the collision: passengers in both cars involved in an accident as well as pedestrians or cyclists hit by one of them. Third-party coverage is mandatory in some countries, sufficient in most, but optional in a few.
In addition to the compulsory third-party insurance, there are two other types of insurance that can be bought by the owner of a vehicle: “comprehensive” and “collision coverage”. The first type of additional coverage provides protection against all losses not related to traffic incidents. This will include protection against theft, vandalism and damage due to natural disasters such as earthquake or flood. The second type of additional coverage insures owners against accidents caused by their own negligence: car owners may be required to buy this extra coverage as part of South African law if they have had an accident previously without having purchased collision coverage. Car owners are often required to buy this extra coverage if their claims for compensation exceed a certain limit.
Car insurance companies compete with one another by offering discounts for the maximum possible coverages at the lowest possible rates. The same product can be offered with different prices and discounts from one company to another. Prices typically depend on the individual driver’s age, experience, type of car, driving history and place of residence.
Do I need to compare car insurance offers before buying?
If you’re like many people, you may find yourself shopping for car insurance every couple of years. If this is the case, it’s important to compare offers to make sure that you are getting the best deal possible. In this section we’ll cover why comparing offers is so important and what benefits come of it. We’ll also go over a few tips for comparing car insurance, as well as some resources for finding quality comparisons.
When it comes to car insurance, you shouldn’t wait until your policy is up for renewal to shop around. Instead, you should regularly check out the premiums of similar insurers and see if there are better deals available elsewhere. By comparing offers before purchasing new insurance policies, you can potentially save yourself hundreds of Rands each year.
This doesn’t just apply for full coverage insurance either. If you are just looking for liability coverage or comprehensive protection, there may be other policies out there that are less costly. As long as you have some form of cover, it shouldn’t hurt to shop around and see what’s available in your area.
To ensure that you’re getting a good deal, you should make sure to research your search thoroughly. First, use BetterMoney’s easy to use comparison engine. This feature allows you to quickly sort policies based on your own unique set of circumstances.
The comparison engine allows you to compare dozens of different insurance providers at the same time. It displays each policy side by side so that you can spot key differences in coverage, as well as price. Next, you should visit each insurer’s website individually and check out their rates and offerings. If possible, compare plans that are identical in coverage but have different prices. By doing this, it will be much easier to determine which insurer is offering the better premium.
If you are shopping for commercial liability insurance, it’s important to make sure that you review the terms and conditions of each contract. Not all companies offer the same level of protection, so it’s important to do a thorough comparison of the plans that you are considering. Also, make sure to check out the minimum and maximum liability limits for each policy and make sure that these numbers match up with your needs.
The minimum and maximum liability limits are important as well because they determine how much your insurer will cover in case you are in an accident. For example, if your policy has a R500,000 limit, you will be covered for up to R500,000 if you were involved in an accident. Even though you may have a million-rand insurance policy, there’s always the risk that someone could hit you with a R100,000 car and destroy your car completely.
Even though it’s a little bit of extra work, comparing car insurance offers before signing on the dotted line is well worth the effort. By doing this, you can save hundreds of Rands each year and protect yourself from getting stuck with higher premiums later on.
How do I cut my car insurance costs?
Keeping your car insurance costs down can be a difficult task. With rising prices, it seems like no matter what you do, your rates won’t budge. It’s not easy to find ways to cut those costs but there are many places you can start:
- Make sure the cars in your household are all insured with the same company. Many insurers provide discounts for your second and third vehicles.
- Instal a tracking device. You can get discounts if all of the vehicles on your policy have anti-theft devices and take advantage of discounts for safer driving.
- Shop around until you find a price that fits in with what you’re looking for. The best place to start is with BetterMoney by reading our comparison article here and using our quote aggregator.
- You can lower your rates by raising your excess (your co-payment in the case of an insured payout). A higher excess means lower premiums, so make sure you’re willing to pay if something happens before raising it.
- Driver education courses are a good way to stay safe on the road and sometimes may result in lower insurance premiums. Besides giving you discounts, it may possibly keep you safer in the long run.
- Shop around for different policies with different companies if one isn’t offering what you’re looking for. Use BetterMoney’s insurance aggregation engine above to compare several deals at the same time.
- When looking for the best rates and deals, make sure to negotiate with multiple companies for different discounts. This will give you a better idea of what’s available and how it all works together.
- Use BetterMoney’s online insurance aggregation engine for cheap car insurance quotes instead of going to an agent or broker for quotes. Agents can add on pesty commissions.