CAR INSURANCE

Car insurance is one of the greatest costs of driving and in many cases it outweighs the expenses of servicing, repairs and road tax combined. For most people, only fuel itself costs more than insuring their vehicle, and with this much money at stake it’s obviously a good idea to make sure you’re getting the best deal possible on your policy.

The whole subject of car insurance can seem complex to people having to deal with it for the first time, but a with a little research and background reading you’ll be in a position to drastically lower your premiums, and get a policy which gives you the cover you need at a price you can better afford.

Purchasing Car Insurance

The car insurance process starts with you, the car owner, completing a car insurance quote. Assuming you find the car insurance premium affordable, you’ll agree on a start date for your new car insurance cover. Thereafter, your documentation will be sent to you. This will include a cover sheet that details the terms of your car insurance policy and explains all you need to know about your policy and about car insurance in general.

Before your car insurance cover is activated, you will be required to take your vehicle to an inspection centre. Once you’ve had your car inspected and have complied with any additional requirements in your car insurance policy (like a tracking device, immobiliser etc), your car insurance cover will be fully activated.

Essentially, car insurance will cover your car for private, professional or business use:

Private or social purposes includes driving between your home and your regular place of work.

Professional use is where the car forms an essential part of the performance of any work or function as a Lawyer, Doctor, Actuary, Accountant, Architect or an Engineer; it also includes private use.

Business use is where the car forms an essential part of the performance of any work or function and it also includes private use. Because your car is on the road more often than if you only use it for private purposes, the chance of it being stolen or involved in an accident is much greater and thus the premiums are higher.

Types of Car Insurance

1. Liability Insurance –Generally, this type of coverage provides for the repair costs as well as the medical bills resulting from an accident, which is the policy holder’s fault.

2. Collision Insurance – This is the coverage that takes care of the policyholder’s own vehicle while liability insurance attends to the other properties and individuals affected by the accident.

3. Comprehensive Insurance – This coverage works for incidents other than car accidents. When unfortunate events happen and end up damaging the vehicle in one way or another, this car insurance coverage makes sure that the necessary repairs are done without costing the policyholder a cent.

4. Uninsured Motorist Insurance – This coverage is useful in case the driver who is responsible for the accident does not have enough coverage to pay for all the expenses incurred in the accident.

5. Medical Insurance – This is the coverage that helps out with the costs involved in treating the injuries that result from a car accident. The good thing about this one is that it takes care of the medical bills of every passenger onboard regardless of who is at fault.

6. No-fault Insurance – This is quite helpful for paying off the injuries and property damages incurred in an accident.

7. Gap Insurance – This car insurance coverage is mostly used by those who are still paying for the cars that they are driving.