There are three basic types of car insurance. Generally the more insurance cover, the more it will cost you. If you have agreed to have the car as security over a loan then you will have to take out comprehensive insurance for the term of the loan.
You should take out insurance cover as soon as you purchase a vehicle so you are insured against accidents from the word go.
Comprehensive insurance covers damage to your car, damage to other people's cars and property as well as damage to your car caused by fire and your car's theft.
Third party, fire and theft insurance covers damage to your car by fire and your car's theft, as well as any damage that your car causes to other cars and property but not any damage sustained by your car.
Third party property insurance covers you for any damage that your car causes to other cars and property but not any damage sustained by your car.
Things to consider when you are choosing an insurance policy:
- Will the insurance cover damage caused when someone else drives the car?;
- What is excluded or not covered by the policy?;
- How much is the excess? This is the amount of money that you need to pay when you make a claim. For example: For a driver under 19 it can be as high as $1750;
- Find out if it is possible to pay the insurance premiums by monthly instalments so that its cost can be spread over the year.