In their desire to keep their car insurance rates as low as possible, many people in South Africa are willing to accept greater risk of loss on their own vehicle in exchange for smaller monthly premiums. This is usually accomplished by purchasing one of the lesser policies that cover only damage done to another vehicles or people in the event of an accident. Unfortunately, in cases of theft or damage to your own car, lesser policies provide little to no protection for any losses that you sustain. To obtain that additional protection, most experts recommend that you at least consider comprehensive car insurance.
What it is
Comprehensive car insurance is fairly easy to understand. This type of coverage protects you in the event of damage to your vehicle and even the loss of the vehicle if it is stolen. In addition, you are covered if another person should be injured by you in an accident, or if their vehicle suffers damage – which is an important protection to have if you want to avoid the possibility of being sued for damages related to any liability you may have as a result of the accident. Of course, comprehensive coverage does not include everything that can befall a vehicle, which is why it is incumbent upon you to ensure that you fully understand the extent of the coverage you are purchasing.
The cost factor
In keeping with the old adage that you get what you pay for, comprehensive car insurance is the most expensive type of insurance available in South Africa. Because of the cost, you should examine your degree of risk and the actual levels of coverage that you anticipate you will need. Do you live in an area that is prone to heavy storm activity such as frequent hail? If so, the extra money you pay for comprehensive coverage will surely be justified in the end – provided that hail damage is included in the policy. Is your area at a high risk of crime such as theft or vandalism? Comprehensive coverage will be necessary if you want to be protected, but you can also expect the insurer to expect higher premiums because of the increased rate of risk.
Know the details
Of course, effective management of your comprehensive car insurance will require you to be mindful of the policy details. The number one mistake people make with car insurance – and the mistake that results in claims not being acknowledged by the insurer – is a failure to ensure that your coverage protects everything that you want protected. It does no good to turn in a claim for a stolen car stereo, for instance, if you never bothered to tell the insurance company that your car contained a stereo. To avoid similar instances be sure to disclose and discuss every feature of the vehicle with your insurance representative when you purchase your policy.
Cars represent a major investment for every vehicle owner. One accident or incident of theft or vandalism can cause tremendous financial hardship and sometimes the complete loss of your property. To safeguard both your vehicle and your financial stability, there is nothing more beneficial than comprehensive car insurance.
