You do not have a choice when deciding whether you need or do not need car insurance. It's mandatory, and when caught without it, citizens are in deep trouble. So obviously you must take out a policy. But which policy you ask?
Every car traveling on the road is covered under compulsory insurance. If they are not, the vehicle's owner is in deep trouble. Unlike third party insurance or comprehensive insurance, compulsory insurance is designed to cover other cars or individuals hurt in an accident. It does not protect the vehicle the car is insured under.
Compulsory insurance factors in driving age and experience before anything else, which makes for very high premiums for young adults just starting out on the road. Unfortunately, there is little you can do to alter this high premium for your children.
What you can do stress the importance of safe and defensive driving to your children. Tell them to avoid distractions and keep their eyes fixed on the road in front of them. If they do that, there premium will slowly progress in dollar signs as the years progress.
If the car owner wants to insure their vehicle against damages in an accident, they sign up for third party insurance. Third party insurance only covers your car in an accident if you are the only vehicle involved. Insurance companies pay out most third party claims after deducting a preset amount of repair damages known as "deductibles."
You can sign up for a wide range of deductibles which are taken out in the event of an accident. The higher your deductible, the lower you will reduce the cost of annual insurance. Every year your son or daughter avoids an accident they will receive a "no claims" bonus which is good towards the next year. The bonus reduces the premium and reduces costs every year the trend continues.
Comprehensive insurance is the last form of coverage a driver should consider for his or her policy. The type of insurance covers damage to vehicles involved in the accident as well as damages or good stolen in theft related instances. Comprehensive insurance is calculated on the value of the car, age of the driver, and strength of its security system.
Every car traveling on the road is covered under compulsory insurance. If they are not, the vehicle's owner is in deep trouble. Unlike third party insurance or comprehensive insurance, compulsory insurance is designed to cover other cars or individuals hurt in an accident. It does not protect the vehicle the car is insured under.
Compulsory insurance factors in driving age and experience before anything else, which makes for very high premiums for young adults just starting out on the road. Unfortunately, there is little you can do to alter this high premium for your children.
What you can do stress the importance of safe and defensive driving to your children. Tell them to avoid distractions and keep their eyes fixed on the road in front of them. If they do that, there premium will slowly progress in dollar signs as the years progress.
If the car owner wants to insure their vehicle against damages in an accident, they sign up for third party insurance. Third party insurance only covers your car in an accident if you are the only vehicle involved. Insurance companies pay out most third party claims after deducting a preset amount of repair damages known as "deductibles."
You can sign up for a wide range of deductibles which are taken out in the event of an accident. The higher your deductible, the lower you will reduce the cost of annual insurance. Every year your son or daughter avoids an accident they will receive a "no claims" bonus which is good towards the next year. The bonus reduces the premium and reduces costs every year the trend continues.
Comprehensive insurance is the last form of coverage a driver should consider for his or her policy. The type of insurance covers damage to vehicles involved in the accident as well as damages or good stolen in theft related instances. Comprehensive insurance is calculated on the value of the car, age of the driver, and strength of its security system.
About the Author:
Graham McKenzie is the content Syndication Manager at Insurance123.co.za South Africans leading car insurance information portal
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