Accidents happen so quickly, especially when your kids learn to drive or that tree jumps in front of your wife's car. That is why you have to make very sure you understand your type of car insurance – and check that it fits your unique needs.
Motor insurance premiums vary according to the individual and are calculated upon a great number of criteria. Think of the driver's age, the experience he or she has, the driver's previous driving-record and the type of vehicle you want to insure. Other criteria include the occupation of the driver and, of course, the choice of insurance companies you want to use.
As with any insurance, when buying insurance for your vehicle, one is required to give the insurer the correct and full information regarding the driver and type of vehicle. If this is not the case, your policy can be invalidated and it is a criminal offence.
When looking into a policy, one may learn the terms "excess" and "voluntary excess". Explaining the terms is worth while… Excesses refer to the amounts of a claim that one has to pay, in other words the amount that is not covered by the insurance. Excess-amounts are again calculated according to a couple of criteria. The type of car you are driving can influence the excess-amount, for example a high-maintained sports car will cost a higher excess-amount than a reliable, family car which only needs a service twice a year. It can be organised that you pay an additional excess-amount in order to reduce your premium.
The three most popular types of car insurance are the following:
- Third Party Only
It covers your legal ability for death injury or damage to properties belonging to a third party. - Third Party & Fire
This type of insurance is an extension of the above. It also includes damage caused by fire. - Comprehensive
It gives you protection if your vehicle suffers accidental loss (including theft) or damage, or if you cause damage to another person's property or cause bodily injury to third parties.