Top 5 Reasons You Need Car Insurance Today!
Mondo Admin / 10-10-2022 / Financial News
It's been said that car insurance is like a seatbelt. You don’t really think it’s necessary until you need it! Some people may not see the point of paying for car insurance. In fact, according to recent statistics, nearly 67% of South African vehicle owners don’t have insurance. If you’re a part of that statistic, you could be setting yourself up for financial troubles in the future. To help you make the right decision, here are our top reasons why you need car insurance.
- Protect yourself from theft
Car theft is when a vehicle is taken without the owner's permission. This can happen for several reasons: it could be that you forgot to lock your car, or the thief may have broken into your garage and taken it from there. Many times, thieves target vehicles that are left unattended in parking lots or on streets with limited lighting.
If you suspect that your vehicle has been stolen, contact your insurance company immediately and file a report with the police so you have peace of mind that you’ll be paid out if the car is not recovered.
- Roadside Assistance benefit
Emergency roadside assistance is one of the benefits of having car insurance. If your cae breaks down and you have a policy, you can call for help and have a tow truck come to get you and your vehicle. All of these services are included with most policies and will make an already bad situation better.
Luckily, roadside assistance has never been easier to find than it is now, as many companies offer this service for free or for a low monthly fee. The bet way to find out if a company offers emergency roadside assistance is to call them or take a look at their website. If they do offer it, then your in luck!
- Cover for vehicle damage
If you cause damage to another person’s car, or if someone smashes into your car, then your insurance will cover the cost of the repairs. Your insurer will also cover any legal costs related to the incident, so don’t worry about having a fight on your hands (or in court).
Insurance companies offer cover for damage to other people's cars as well. It allows you to claim for any medical expenses and property damage that is caused by an accident that was not your fault – so maybe now we're starting to understand why it's important!
Personal injury protection is another important component of auto insurance coverage because it provides medical care for injuries sustained by passengers in the vehicle when an accident occurs.
- Cover for passenger liability
In South Africa, insurance is compulsory for every new vehicle owner. This means that if you have a car, your insurance cover is mandatory, and you must have it before you can register your vehicle.
As with any other type of insurance policy, there are many benefits to having car insurance in South Africa. Below are some reasons why it’s important to have the right kind of coverage:
Cover for passengers in other cars – If someone else driving a different vehicle hits yours, then their insurer will pay out damages on their behalf. The good news is that this applies even if they were at fault.
Cover for passengers on motorcycles – If a collision occurs between two or more motorbikes, then personal injury claims arising from these incidents will be covered under your motorbike policy as long as the injured person was riding another bike at the time of impact.
- Get cover for
total loss
You will be paid the value of your car at the time of the accident or theft. This may seem like a simple concept, but there are two ways to claim this – either by its cash value or by its market value. The cash value is determined by your insurance company, while the market value is determined by an independent vehicle valuation company that looks at all aspects of the car, including its age and condition.
The reason why it's important to know about these two options is that they can have a big impact on how much money you receive in case of an accident or theft (or if you decide to sell it yourself). If you choose to claim based on actual cash value as opposed to what it would cost new at today's prices (market price), then you might end up with significantly less than what your car would sell for in a dealership sale.
Making your decision
You must understand what your insurance policy covers before purchasing it. Don't just look at the price, but also consider value. People often go for the cheapest option but end up regretting their decision when the time comes to claim but the company refuses to pay based on loopholes in the contract. If you're not sure how to compare value and price, let us help. Just apply online for our Total Loss cover and we’ll call you back to chat about your options.
Remember, car insurance is a necessity for anyone who owns a vehicle in South Africa, and it can also be an investment in your future financial wellbeing.
