Buying a car, especially your first, is the second largest purchase you will ever make following a house. It’s hard to think about it in that manner, because it suddenly raises the flow of your blood and you begin to think about how important your vehicle is to your assets. Is it well protected?
The law requires that every car on the road is insured. Basic insurance or compulsory insurance only covers any other cars for damage and repairs in an accident that is defined as your fault. If your car is also damaged, the costs will come out of your own pocket.
The law requires that every car on the road is insured, which leaves you no choice but to take out compulsory insurance unless you want to get fined or imprisoned heavily for ignoring the insurance. Compulsory insurance only covers the other vehicles involved in the accident if you are the one held responsible for the accident.
Buying a car for the first time is a big step in a man or woman’s life. However it also comes with some risk and more expenses.
Not only will you be paying a lot of car payments and such, but also expenses for repairs and the small chance it might be involved in an accident.
However, if you have the common sense to take out comprehensive coverage, your vehicle is protected under several forms of damage and even theft.
Insurance premiums are calculated on an annual basis, and should run at around 6% of the replacement value of your car.
Insurance premiums are calculated on an annual basis, and should run at around 6% of the replacement value of your car. A lot of people will gladly cover that amount to insure much stronger protection from the insurance company.
If you are young you are going to pay a lot. Comprehensive car insurance also covers your vehicle in the unfortunate instance of a car theft.
Car theft happens all the time, as many robbers find radios, disc players, GPS systems, and other items in the car very desirable. Protect your goods with extensive coverage.
Graham McKenzie is the content Syndication Manager at Insurance123.co.za South Africans leading car insurance information portal
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