Whenever you get behind the wheel of a motorcar you are faced with the possible risk of causing damage to your own or another person’s property, and injuring or even killing yourself, other drivers, passengers or pedestrians.
Car insurance also known as auto insurance, vehicle insurance and motor insurance is purchased for all types of automobiles including cars, bakkies, minibuses and trucks. Car insurance provides financial cover against damage or loss caused to an insured vehicle that occurs due to a fire, theft or accident. Auto insurance also provides cover for financial liability against damage caused to someone else’s property, and injury to, or death of another person in the event of a car accident.
Most people don’t have cash available to pay for the losses or liability that can result from driving. Car insurance protects you and your family against claims that can leave you in financial ruin. In exchange for a monthly premium, car insurance companies agree to take on the risk to protect you in the event of an accident. Car insurance companies also protect your wealth by settling any loss or liability that may result from driving.
In South Africa there is no mandatory insurance regulation that requires all drivers to have car insurance unless the vehicle is still being financed by a financial institution. However, the benefits of auto insurance will always outweigh the costs when you need it. There are many companies offering online car insurance in South Africa with different levels of cover. In general the benefits of motor insurance include the following:
* Liability cover – covers legal costs, damage claims and personal injury claims filed against you if you damage another person’s property, kill or injure someone with your vehicle and you are found to be at fault.
* Uninsured automotive coverage – protects you against expenses incurred as a result of a vehicle accident that is caused by another individual who is uninsured.
* Theft coverage – covers the costs of repair or replacement of a vehicle that is damaged or stolen because of hijacking, theft or attempted theft.
* Accident repair coverage – covers the cost of repairs to your motor vehicle damage due to a collision with other vehicles, objects, or even persons. It also covers the repairs to someone else’s automobile damaged in a collision which is your fault.
Because vehicle insurance companies have similar products it is often difficult to decide which one to choose. Here are some of the benefits you get with online car insurance quotes and cover from PSG:
* Car insurance quotes – The PSG Online auto insurance quote system gives you several car insurance quotes from different insurance companies. You can then compare and select the car insurance quote that provides the right cover for your budget.
* Low Cost – We add value to short-term insurance through products, tariffs and low excess structures that are unique to us and very competitive in the marketplace.
* Policy management – You can manage your car insurance policy, print out proof of coverage, and view or manage your online bills through the PSG platform.
* Accessibility – Your car insurance details are accessible online so you have 24/7 service when you need it. In addition, our PSG Konsult broker support network which exceeds 250 branches countrywide network that exceeds 250 branches countrywide supports can offer a wide variety of additional products and other financial services.
* Online car insurance claims – The PSG platform lets you file a claim online and even follow it up online. You will also receive access to and expert team providing technical underwriting and claims advice for your car insurance.
* Convenience – We support you in every aspect of the process from the conclusion of your application to the maintenance, from regular reappraisal which improves competitiveness to car insurance claims of all sizes.
* Rewards – You will earn rewards whether you claim or not.
* Free Assistance – As a PSG short term insurance policy holder on your vehicle you will qualify for free emergency roadside assist.
Before you accept a car insurance quote, make sure you understand insurance terminology so you can ask your insurance broker questions.
Car insurance premiums, like all insurance premiums, are determined based on risk and are calculated to reflect the probability that you will make a claim. Those who are unlikely to claim will have lower premiums than those more likely to make a claim.
Car insurance companies take many factors into consideration to determine the likelihood that you will make a claim. The factors car insurance companies use to determine premiums include: where you live, the type of vehicle you drive, whether your motorcar is for business or personal use, your driving record or claims history, your statistical group and other factors.
The good thing about car insurance companies in South Africa is that there are basically three types of insurance to choose from. PSG Online offers flexible automobile insurance through various car insurance companies to cover losses such as theft, accident and third party liability.
Car insurance companies provide the following cover:
* Third party car insurance – Is the cheapest of the three and provides cover for any damage you may cause to other vehicles, and the accidental death or injuries of a third party caused by you in an accident. This does not cover you against the loss of, or damage to your own vehicle.
* Third party, fire and theft car insurance – This covers against damage, death or injury to a third party caused by you in an accident. This also includes compensation for loss due to attempted theft, theft or hijacking of your automobile, and damage to your vehicle that was caused by fire, lightning or an explosion.
* Comprehensive car insurance – This covers just about any risk your car is going to be exposed to, regardless of whether it is parked or in motion. Comprehensive also includes roadside assistance, medical assistance, towing and storage depending on the type of comprehensive cover you choose.
* Additional options that can be added to your motor insurance policy include car hire and cover for non-standard sound systems or other car accessories.
Regardless of which car insurance policy you choose, make a point of reading and understanding the inclusions and exclusions. Fortunately, car insurance companies in South Africa are very diligent in their disclosures. Should you have any questions while working through the various clauses, ask your broker for clarification before making a final commitment.
About the author
The PSG Online auto insurance quote system gives you several comaparative car insurance quotes from different insurance companies.