Car insurance is a form of insurance purchased for motorcycles, cars and other road using vehicles. It is also commonly referred to as motor insurance or auto insurance. Its main aim is to cover any financial liability in case of any damage to the vehicle, bodily harm or other third party incident such as theft or arson. Car insurance is a major part of the insurance industry and it continues to grow each day due to the increase in vehicle purchases each day. And due to the high risk associated with motor vehicle transportation it is important for individual to ensure that they have vehicle insurance at all times. The policies that define the motor vehicle insurance industry vary in different regions and South Africa is no exception.
It is also important for owners of motor vehicles to ensure that their cars are insured in case of anything since one may never know what might happen. In South Africa there is the Road Insurance Fund that compensates third parties in accidents. The fund is collected from a levy placed on motor vehicle fuel. Damage incurred to the vehicle, other property in and outside the vehicle is not covered by the Road insurance fund. There are however numerous car insurance South Africa companies that offer other different covers other than the individual party cover. It is important to note that car insurance is one of the most important insurance covers one can take and can save an individual a lot of money. One can also incur heavy financial losses if they make wrong decisions when it comes to car insurance. Car insurance is can be very expensive in South Africa due to the high risks of criminal activities in the country, the amount of unlicensed road users who use vehicles each day and the strict conditions placed on insurance policies by the law makers.
Like purchasing any other form of insurance cover, car insurance requires that one reads the fine print carefully and that one understands the terminology in the policy statement and the terms and conditions properly. This can be a very important factor in claiming once cover in case of any accident. With the statistics of the number of hijackings and accidents that occur daily in South Africa it is prudent for any individual to take up insurance cover. Any one who decides to remain uninsured has only themselves to blame in case the car is stolen or any damage is incurred in an accident. One will have to incur the cost of repairs of the car on their own or even the cost of purchasing a new one in case it is stolen. Other factors one may consider when looking for an insurance company to cover their vehicle is the type of vehicle. This is a major factor many insurance companies consider when costing your premiums. It is also prudent to shop around and get a few quotes before one makes a decision on which company to go with.