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Understanding the Basic Types of Car Insurance

In other words: Car insurance for dummies…

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Every car owner/driver need car insurance. Vehicle insurance protects you legally and financially when you cause property damage to your own or other cars as well as bodily injury or death to someone else when driving your car. It is said that only about 35% of vehicles on South African roads are insured, which is a rather shocking statistic and even more reason why you should get the right insurance policy.
Knowing how important it is to get the right insurance policy for your car, you need to understand the various types of auto insurance before you decide on which company you will choose for your insurance policy. There are many insurance companies out there and it can be overwhelming to decide which one to go for.
Here are some tips to help you research your car insurance company:
• Make a list of the providers you are interested in contacting for quotes. Get at least three detailed insurance quotes and make sure you are comparing apples with apples
• If you decide to go for the cheapest one, make sure everything you require is covered and that there are no hidden costs such as a huge ‘excess payment’ amount.
• Ask around and study the insurer’s reputation for service, price and claim settlement turnaround times. Make sure the company you choose is a registered Financial Services Provider in South Africa.
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