subject: So Why Acquire Automotive Insurance [print this page] So Why Acquire Automotive Insurance
Lots of people have a car of some description, it could be a hatchback, bakkie, sedan or any of a dozen other types of vehicle available for purchase. Many of these people have also got automotive insurance, but why? It's expensive and a bother to try and get quotes for. Then try and claim! So why do people get out automotive insurance?
Firstly, it is required by law to take out an automotive insurance policy with the purchase of a new car. The reason being that banks want to be able to be certain of getting their loaned funds back even if the car is written off. If your car is written off, then automotive insurance will compensate the value the car was insured for. This money could be used to pay off the remainder of the loan taken to buy the car initially or to buy a new car, it is your decision and your budget.
One more reason for taking out automotive insurance is to protect your finances against repairing damage caused in an automobile accident. If you are ever in a car accident and your car is damaged, either you have to pay for it or you can get it from your insurance company. For minimal damages, it may be better in the long run to pay for it yourself since if the maintenance cost is lower than your excess fee, the insurance is not going to pay out at any rate but you will be listed as having claimed which could potentially cause your premiums to rise. If however your car sustains damages which will cost thousands to repair your insurance will pay for those repairs to be done at an approved technician and panel beater, all you would be responsible for is the excess repayment.
You can find various types of automotive insurance. The first one is third party cover. This means that you are covered regarding claims by other partiesshould you be involved in an car accident. This means that you will not be liable to be charged the other parties' damages if and when they claim you were to blame. The other option is comprehensive cover. This variation is much more flexible. You are able to adjust your excess cost to an amount you can afford. You can claim for damages caused by either yourself or someone else and get money out for the repairs. Comprehensive covers many more areas of potential damage and loss than third party does, it is however a lot more expensive, especially if you happen to be beneath the age of 25 or have had your license for fewer than five years.
Automotive insurance is unquestionably worth the trouble and effort. It will save you a lot of heartache and tremendous cost in case of a major accident. You can use a payout when your automobile has been written off to pay off the car or get a new car. If you should be caught up in an accident, all you are liable for is the excess repayment you arranged to pay. Automotive insurance may cost you a little each month, but you will not ever have to worry about having to repair the loss caused by a reckless driver.
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