There are many different kinds of car insurances offered in South Africa and some of the offerings have been specifically designed for the special needs of South African drivers as well. While it is wonderful to have such a range of products to choose from, it can also be overwhelming. To begin searching for the right car insurance for you it is wise to begin narrowing down the definition of what type of coverage you need.
Car insurances fall into two main categories, comprehensive and liability. Comprehensive car insurance provides the fullest coverage in the event of damage, accident or theft and has the higher premium and claim payout rate. Liability insurance is the minimum insurance allowed by law. The premiums are low, as is the claim payout, and this insurance is designed to only cover damage caused to another vehicle. While choosing the liability insurance may seem like a great way to save money, consider that should you be involved in an accident, there will be no monies to claim from the insurance to repair your vehicle. Comprehensive insurance usually also includes provisions for towing, road side assistance, medical and trauma help.
The prices of car insurances are also affected by a number of different factors. Insurance companies will review your driving history as a part of their determination of the amount of risk your represent, the higher the risk, the higher the cost of the premium. Other factors are also examined such as whether or not the car you own and where you live puts you at a higher risk for vandalism, theft or hijacking. Not to mention that some performance cars are seen as high risk because they are considered to encourage reckless driving. If you are under 25 years of age you should also expect to pay more in premiums as your youth is considered to make you a high risk.
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