Now that you have discovered a car ideally suited to your needs, ensuring that your car is adequately insured becomes the next essential obligation. 

Regardless of your level of expertise or cautiousness as a driver, or even if you have purchased a more economical car outright, driving an uninsured vehicle exposes you to significant financial jeopardy.

What exactly is car insurance?

Car insurance, also known as motor vehicle insurance, entails entering into a contractual agreement with an insurance company. In the event of theft or damage to the insured vehicle or the other vehicle involved, the insurance company assumes financial responsibility.

When you acquire insurance, you are essentially making a purchase based on a promise. You make monthly payments to the insurer, determined by your personal information. However, should the insurance company compensate you with the market value of your car, it is unlikely to be sufficient for you to purchase an identical replacement.

Why is car insurance necessary?

In South Africa, where incidents of theft, hijackings, and road accidents are prevalent, having insurance as a protective measure is of utmost importance. In recent years, the cost of vehicle repairs has risen significantly, along with an increase in average insurance claims. The South African Insurance Association (SAIA) reports that 65% of drivers operate uninsured vehicles. The consequences of lacking insurance extend beyond the individual and impact other road users as well.

Considering these risk factors, insurance companies have been compelled to reassess the cost of insuring vehicles.

If you are involved in an accident without insurance, you bear sole responsibility for covering the expenses of repairing your car. Additionally, if you attempt to claim damages from another uninsured driver, you will also be liable for the legal costs.

What factors determine your premium amount?

Several factors determine the value of your car insurance premium. The insurance provider disburses a specific sum based on various values and information provided by you.

• The make and model of your car. 

• The age and condition of the vehicle. 

• The potential replacement value of the car. 

• The insurer will likely reimburse you with the market value of the car. 

• The market value represents the average of the vehicle’s retail and trade value. 

• The trade value refers to the price offered by a second-hand dealer. 

• The retail value denotes the price you paid for the car when purchasing it new or second-hand.

How to locate the best car insurance.

The prevalent issue among many South African drivers is the absence of motor vehicle insurance. While the premiums may appear steep, which may seem like a justifiable reason for car owners to struggle with payment, it should not be an excuse for lacking car insurance.

Driving without car insurance is an excessively risky endeavour. Fortunately, numerous reputable insurance providers are available to assist you in finding the most suitable insurance coverage that aligns with your lifestyle.

We give attribution to this article from the original source: Inspiring Women