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car insurance, also called auto insurance,
motorcar insurance,
motor insurance,
motorcycle insurance and
bike insurance, is insurance the public can buy for their cars, trucks, and motorcycles. The primary use of c
ar insurance in South Africa is to offer cover against losses resulting from traffic accidents and theft. The following is a brief description of car insurance, but if you already know about the topic, we suggest you click through on the
quote links and get a quote from
InsuranceHound,
Outsurance,
Hollard and
Dialdirect. Be sure to wait for a car insurance quote from all the companies before taking out a policy and let the representatives know that you are checking out their competitors. This will ‘motivate’ them to give you the best possible deal!
Insurance Coverage Cheap car insurance can cover the following:
* The insured driver or owner
* The insured motor car or motorcycle
* Third parties
Insurance policies differ in respect to what is covered by the policy e.g. theft, fire, or accident damage. Policies also differ in respect to the extent of remuneration.
Public policy Car insurance is compulsory in many countries around the world, but not in South Africa. South Africa takes a portion of the money earned from petrol and places it into the Road Accidents Fund. This money is used to compensate third parties in accidents.
Basis of premium charges In South Africa the insurance premium is determined by the insurance companies following government regulations and frameworks. Besides regulations, premiums are calculated using statistical data calculated by actuaries. Factors that influence premiums include car characteristics (alarms, immobilisers, airbags etc.), the coverage chosen, the driver (including age, gender, history etc.) and the usage of the car (commuting or business).
Gender Men tend to drive more than women do, and therefore have a higher accident rate. Women drivers are therefore more likely to have lower premiums.
Age Younger drivers don’t have much in the way of driving histories and will therefore have higher premiums. Premiums tend to come down after the age of 25, and will go down a lot after the age of 35.
Car Characteristics Due to the high rate of vehicle theft; many insurance companies will refuse to cover a vehicle for theft unless an approved alarm or anti-highjack system is installed in the car.
Some insurance companies also take the vehicle colour into account when calculating a premium.
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