The current data indicates that around 65 percent of South African drivers are without auto insurance cover and this is really alarming situation against the remaining 35 percent drivers who have purchased the auto insurance cover. So, what are the reasons responsible for the people not to make at least minimum auto insurance cover?
Lets start with an overview of the insurance types. In South Africa, auto insurance cover has three basic forms.
The minimum cover is Third Party. This covers your liability (costs) if you damage someone elses personal property in an car accident. This includes other cars or structural property that may also be damaged.
You can add to the minimum by purchasing Third Party Fire and Theft. This will cover you in the event that your vehicle is damaged by fire, theft or attempted theft.
Comprehensive cover is the one that is recommended for most South Africans. And the aAdvantage of comprehensive motor insurance is that it is unique as it covers the most South Africans including Third Party Fire and Theft. It also extends to cover the damages to your own or someone else’s car when you are driving it.
Drivers working in South Africa can obtain vehicle insurance options that can address the unique needs of operating a vehicle in this area. Such options include motorcycle, off-road, comprehensive cover, and caravan cover.
Because South Africa is a high risk insurance environment, premiums can be high. But you can take some steps to lower your premiums.South Africa is often a world leader in traffic injuries and fatalities and the roads are becoming increasingly dangerous. Car theft and hijackings are also all too common.
When deciding on a policy, it’s best to shop and compare quotes first. The best way to do this is by looking online which may enable you to get a lower price according to the company you want to work with.
If you remain accident-free, you can expect to pay lower monthly premiums. If your current insurance provider does not offer discounts for safe driving, it might be time to shop around for better rates.
During the purchase of insurance, you should check the maximum amount that you are going to paid if claimed. If this excess amount is high, then premium will also be high. Selection of maximum amount depends on you. It gives you benefit on long run, if you can afford higher excess amount.
If you own an expensive or high performance vehicle, you will pay more for your premiums. These cars cost more to insure because they are considered a higher risk and are expensive to replace or repair. So when you car shop, keep in mind that your insurance premiums will add to the cost of owning the vehicle you choose.
Receive discounts and pay lesser premiums by exceeding the security requirements mandated by your insurance company. So get your vehicle installed with security gadgets that exceeds the minimums specified by your insurer.
If you live in a high crime area, your car is at greater risk for theft or hijacking. Consider moving to get lower premiums. You can also receive a discount if you park your car in a locked garage or behind locked gates overnight.
Don’t be afraid to negoiate a deal with your insurance company, because they are very interested in keeping your business and willing to work out a deal with you.