Buying a car, especially your first, is the second largest purchase you will ever make following a house. It’s hard to think about it in that manner, because it suddenly raises the flow of your blood and you begin to think about how important your vehicle is to your assets. Is it well protected?
The law requires that every car on the road is insured. Basic insurance or compulsory insurance only covers any other cars for damage and repairs in an accident that is defined as your fault. If your car is also damaged, the costs will come out of your own pocket.
The law requires that every car on the road is insured, which leaves you no choice but to take out compulsory insurance unless you want to get fined or imprisoned heavily for ignoring the insurance. Compulsory insurance only covers the other vehicles involved in the accident if you are the one held responsible for the accident.
A vehicle is a valuable asset and one you should always maintain to protect. You would make a very unwise move not to. You don’t want to be viewed as stupid do you?
Of course you do not. But people will refer to you as stupid if you go out, are involved in an accident, and now have no means to cover the damages. Now you are walking or biking to work.
However, if you have the common sense to take out comprehensive coverage, your vehicle is protected under several forms of damage and even theft.
That is why car insurance providers heavily recommend comprehensive coverage.
For someone like you who is buying their first car and contemplating the fact that their comprehensive car insurance policy seems like a lot of money, then it’s important to realize that you have no choice. Insurance providers look at the value of the car as well as the age and experience to calculate insurance premiums.
Comprehensive car insurance will cover anything from accidents where you are at fault, to accidents where no one but yourself was involved, or cases of theft. It’s very important to cover yourself from damages incurred via theft.
As you can see, ignoring comprehensive car insurance is a grave mistake. Save yourself the hassle and spend a little extra every year on your insurance policy.
Graham McKenzie is the content Syndication Manager at Insurance123.co.za South Africans leading car insurance information portal
Tags: Automobiles, car insurance, Cars, finance, insurance, money
