The vehicle you have or will purchase is one of your largest purchases you will ever make, next to buying a house. You never really thought of it as that big of an investment did you? Statistics prove that an average homeowner will switch homes two to three times throughout a lifetime, while an average car owner will switch at least ten times, making your car and its insurance extraordinarily important.
The law requires that every car on the road is insured. Basic insurance or compulsory insurance only covers any other cars for damage and repairs in an accident that is defined as your fault. If your car is also damaged, the costs will come out of your own pocket.
Most people are aware of this and cannot afford to pay for the high car repair costs or for a new vehicle if the old one is damaged.
A vehicle is a valuable asset and one you should always maintain to protect. You would make a very unwise move not to. You don’t want to be viewed as stupid do you?
Of course you do not. But people will refer to you as stupid if you go out, are involved in an accident, and now have no means to cover the damages. Now you are walking or biking to work.
However if you are covered by comprehensive car insurance, the damages are covered by the insurance agency.
Insurance premiums are calculated on an annual basis, and should run at around 6% of the replacement value of your car.
For someone like you who is buying their first car and contemplating the fact that their comprehensive car insurance policy seems like a lot of money, then it’s important to realize that you have no choice. Insurance providers look at the value of the car as well as the age and experience to calculate insurance premiums.
These desirable goods might include radios, disc players, GPS systems, mobile computers, and other expensive items inside or outside the car. Comprehensive car insurance will protect all of that with the right policy.
Car theft happens all the time, as many robbers find radios, disc players, GPS systems, and other items in the car very desirable. Protect your goods with extensive coverage.
Graham McKenzie is the content Syndication Manager at Insurance123.co.za South Africans leading car insurance information portal
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