Car insurance is an agreement between an insurance company and a car owner. This agreement states that car will be covered should anything happen to it -such as damage caused by an accident, or the car being stolen – if a certain amount of monthly premiums are paid to the insurance company. The policy between the company and client is a set agreement and the agreement will be void in case something should happen to the car, if the client had failed to have made their monthly payment. Car insurance can ensure that if your car I stolen, or you have an accident, you will not need to try and raise enough money to replace your vehicle as you will be covered.
There are many benefits to car insurance, like if you insure your car at market value and it is written of or stolen, you'll be able to replace it with a similar car of the same value. Some of the other benefits are that many insurance companies free medical assistance, free roadside assistance, a free courtesy vehicle should you need to replace your car or when repairs are done. Some insurance companies even offer discounted legal assistance or advice.
Many insurance companies try to secure clients by offering them a lower monthly premium than their competitors would, how ever these are the questions you should be asking:
- Do they offer all the same perks as the other insurance companies (medical assistance, road side assistance, etc.)
- Are they prepared to offer you a courtesy vehicle if your are involved in an accident?
- How long will it take for them to pay out a claim? Will you be forced to wait an enforced standard waiting time before they replace stolen or written off vehicles?
- Is the excess amount higher than the excess amount asked by their competitors?
- Do they offer a fixed premium or will the premium hike it hike through the roof should you need to claim?
The insurance company to go with would be the one who answers these questions the best. The South African insurance industry is very competitive, so it would be best to shop around before you make a decision – using Simple Insurance is a good way to make sure you get the best deal for your needs.
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