This Is The Different Kinds Of Car Insurance

Tuesday, July 6th, 2010 at 2:13 am

Nowadays many of the South Africans are interested in securing their interests through car insurance. This is mainly an after-effect of the increasing vehicle crime and the high rate of road accidents in South Africa.

Proper insurance coverage gives us peace of mind. Even if you become the victim of an accident or the car itself is stolen then the insurance company will be there to provide you with compensation. So it is more important to verify the type of insurance coverage you want before purchasing the vehicle.

There are three main types of insurance in South Africa and they are high-priced. Comprehensive Auto Insurance is just as the name suggests. It includes coverage for almost any type of damage to vehicles resulting from accidents or vandalism. Also, it covers your liability to third parties who might have suffered injuries.

Comprehensive coverage provides for theft, fire and calamities such as flood and hail damage. But the disadvantage of this coverage is that the amount they pay for the expanded protection is less. There is however enough scope for you to reduce the extra costs.

Third Party car insurance is the other option you have. In the unfortunate case that you hit another vehicle, the damage done by you is covered by third party insurance. But this does not cover accidents or vehicle theft. The other person who is injured is covered under third party insurance. However if your own vehicle faces any damage, this will not be covered and this is the disadvantage with this type of insurance.

When you want a middle ground, you can get third party fire and theft coverage that takes care of things that third party insurance takes care of and also any loss that will be incurred because of theft or fire. It doesn't deal with damages to your car in an accident, and that's why it isn't as expensive as comprehensive protection.

There are also more limited forms of coverage that are designed for older vehicles or just to cover bodily injuries of third parties, but the three forms of insurance listed above are the options most commonly chosen by consumers. Which form of insurance is right for you is, of course, is a matter of personal preference. Still, for your own peace of mind and economic well-being, it is generally recommended that you obtain at least some form of coverage for your automobile.

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