Many people have a car of some description, it could be a hatchback, bakkie, sedan or any of a dozen other types of vehicle available for purchase. Most of these people have got automotive insurance, but why? It’s expensive and a bother to try and get quotes for. Then try and claim! Why then do people carry out automotive insurance?
Firstly, it is required by law to sign up for an automotive insurance policy with the purchase of a new car. This is because banks want to be able to be certain of getting their loaned money back even if the car is written off. If your car is written off, then automotive insurance will compensate the value the vehicle was insured for. This money can be used to pay off the remainder of the loan taken to buy the car initially or to buy a new car, it really is your decision and your financial circumstances.
Another reason for taking out automotive insurance is to safeguard your money against mending damage caused in a car accident. In the event you are ever in an accident and your car is damaged, either you have to cover for it or you can demand it from your insurance company. For minimal damages, it may be better ultimately to pay for it by yourself since if the repair service cost is lower than your excess payment, the insurance won’t pay out at any rate but you will be listed as having claimed which could potentially cause your premiums to rise. If however your vehicle sustains damages which would likely cost thousands to fix your insurance will pay for those repairs to be done at an approved mechanic and panel beater, all you would be liable for is the excess fee.
There are various types of automotive insurance. The first one is third party cover. What this means is that you are covered entirely against claims by other parties should you be involved in a car accident. This means that you won’t be liable to be charged the other parties’ damages should they claim you were to blame. The other option is comprehensive cover. This type is much more flexible. You are able to change your excess cost to an amount to suit your budget. You can claim for damages caused by either yourself or someone else and get paid out for the repairs. Comprehensive covers many more areas of potential damage and loss than third party does, it is however far more expensive, particularly if you happen to be below the age of 25 or have had your license for fewer than five years.
Automotive insurance is unquestionably worth the expense and effort. It will save you a lot of heartache and expense in case of accidents. You are able to use a payout when your car has been written off to pay off the car or obtain a new car. If you should be caught up in an accident, all you are responsible for is the excess payment you decided to pay. Automotive insurance may cost you a tad each month, but you will not ever have to worry about having to mend the harms caused by a reckless driver.