How do you know which car insurance you need? Is it a matter of the cars age, or your driving ability? Are you not sure as to your vehicles history? By asking yourself just a few short questions, you will be able to pick comprehensive, or limited liability.
As far as those two policies are considered, sometimes the choice has been made for you. If you received an auto loan, read through the contract, because often times they state which policy is best. At that point, you just have to decide what extras you need or want.
So how old is your car? If it is brand new, hands down, you need comprehensive coverage with all the extras if you can afford it. This is because the car is worth far more then you parents’ old beater, so you have more to lose in case of accidents or anything else. In addition, with newer vehicles, people are more likely to sue whether it is warranted or not, so cover all your bases.
Now, if the car is only a few years old(middle age) then you will need to look at your driving record. All insurance providers base rates on coverage based on a drivers past. Why? To cover their investment. If they have 10 customers paying 100 dollars a month they cannot afford to have half of them get in wrecks and shell out for the repairs. Therefore, the worse your record, the higher your rates; if that is the case, go for liability.
Where do you live? If the crime or accident rate is higher in your city, or state, you will be paying more for each. Comprehensive, as always, will increase dramatically. Liability will also increase, but is far cheaper. Check the types of crime, if that is the case, for your area. Liability does cove fire and theft, but not car damage. Comprehensive, on the other hand, covers most of the unforeseen events that could happen to your vehicle.
In the case of high crime though, you can safely get comprehensive because chances are it will pay off because of the area. If the accident rate is high, while liability may not cover accident damage, the rates will be higher so keep in mind your checkbook.
You should also take a look at the advertisements and history of each company you look at. If they say they can insure ‘anyone’ try not to go there unless as a last resort. You will be paying not just for any decisions or mistakes that you make, but also for the same mistakes and decisions each and every other driver through that company will make. So, be wary of those late night ‘insure anyone’ commercials.
As you can see, several factors will affect what car insurance you should have. Some of them are in your control, like the age of your vehicle and your driving record. Some, like your location, are harder to change. These are, however, just a few factors to consider when making your decision. If you would like to know more, please visit carinsurancesa.co.za for more in-depth information.
How do you know which car insurance you need? How do I Compare Car Insurance prices? Is it a matter of the cars age, or your driving ability? By asking yourself just a few short questions, you’ll be able to pick comprehensive, or limited liability.
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