How does a car insurance work?

This article was posted on 03 June 2016

Posted in Car Insurance


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You car is a critical and indispensable part of your daily life. What could happen if you ever meet with an accident those results in damage to your car? You will have to spend on its repair cost and pay any legal liability to a third party, if it involves damage to a third party. The best way to meet such unexpected emergencies is to have a Car Insurance. Let us see how your Car Insurance policy in South Africa can be of help to you. 

Car Insurance safeguards your wallet from any unexpected emergencies with your car. The cost incurred in repairing your damaged car and any amount that you are legally liable to pay to a third party in case of damage to them will be paid by the Car Insurance. There are three types of Car Insurance policies available:

 

- Comprehensive

- Limited

- Third Party Only

 

  • What is a Comprehensive Car Insurance?

As the name suggests, protects you totally. Comprehensive Car Insurance covers repair cost due to accident and damage or loss to the vehicle due to fire, lightning, explosion, theft or attempted theft along with Third Party legal liability. Comprehensive Car Insurance provides overall protection to your wallet from these unforeseen vehicle emergencies.

Limited (fire and theft) Car Insurance doesn’t cover the damage due to accidents. The coverage is restricted to the loss or damage due to fire, lightning, explosion, theft or attempted theft along with Third Party Legal Liability. 

Third Party cover only covers only the legal liability that you will have to pay to a third party in case of any damages suffered by them due to your vehicle. 

 

  • What kind of car insurance schould I choose? 

The choice of type of car insurance should be based on the needs. The Comprehensive Car Insurance offers widest protection, but is costly. The Third Party Liability only, offers the least coverage and is the cheapest. If your car is new and is of high value, then you should go for comprehensive car insurance. If your car is old and is of low cash value, purchasing comprehensive car insurance may not be cost effective, so you can consider the lower options. 

The premium for Car Insurance depends on various factors, such as make and model of your vehicle, the place where you live, where you park your vehicle at night, the driver of the car, purpose of use of the vehicle, etc. 

There are various ways for reducing the premium for your car insurance. Generally in insurance, any feature that helps in reducing the risk or probability of loss can result in a reduction in premium. This applies to Car Insurance also. The key to manage your car insurance successfully is to wisely use those factors to control the premium and also ensuring to opt for the right coverages. 

 

  • Is car insurance the most important insurance? 

Car Insurance and Motor warranty are the most important insurance coverage if you own a car. There are a lot of factors that can affect the premium in car insurance. So, it is always good to buy car insurance after proper comparison of the various options available in the market. We at Mister Compare, helps you in identifying the right car insurance policy in South Africa for your valuable car.

There are various plans and options available under Car Insurance. We at Mister Compare help you choose the right Car Insurance for your car, from a variety of available options in South Africa. We also assist you in comparing and purchasing other insurance products such as Motor Warranty Cover, Health Cover, Life Insurance, Legal Covers and Hospital Cover in South Africa. Remember, More Options leads to Better Decisions.


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