Understanding The Various Types of Auto Insurance
In recent years, despite the fact that auto insurance is not yet mandatory, it has certainly become more essential to many car owners because of the increasing cost of vehicle repairs which has been climbing steadily over the last few years. Aside from property, a car is perhaps the largest purchase you are going to make in your lifetime, so doesn’t it make sense to cover it against all eventualities? In South Africa there are several different types of auto insurance available, so what sort do you need? Let’s take a look at each of the types.
The most expensive type of auto insurance you can go for is comprehensive, of course with the added cost comes additional cover. As the name implies, it offers the most complete cover against many situations including fire, theft, collision, damage and even hijacking. Comprehensive insurance will also cover you against third party insurance claims made against you for damages – for example if it is you who cause an accident which damages another person’s vehicle.
If you are looking for a cheaper option, then limited auto insurance covers you against theft, fire and hijacking. Limited cover also provides protection against third party claims, but will not cover the cost of any damage to your own car during a collision.
The cheapest type of auto insurance would be third party cover which only covers the cost of damage sustained by other people’s vehicles or property. This is not usually the best option unless you have a very old vehicle or unless you only use your vehicle on rare occasions, although some insurers have actually begun to introduce pay as you go insurance cover for drivers who do not use their car often.
At autoinsurance.co.za, we can find the cheapest quotes for your auto insurance and allow you to compare the various options so that you can be certain you have selected the best option. Do not rely on your automatic Road Accident Fund cover, protect your investment and get auto insurance today.