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.
Most people who have owned a car at one time or another are well aware of the minor details surrounding car insurance, which doesn’t hold true for first time car owners.
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.
If you have no comprehensive insurance when such a calamity does strike, you are left out in the cold to fend for yourself.
Insurance premiums are not extortionate; instead they are calculated on an annual basis and should run at about 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.
Not taking out comprehensive insurance is a disaster waiting to happen. If you really have any wits, you will understand the small annual insurance premium is well worth the expense.
Graham McKenzie is the content Syndication Manager at Insurance123.co.za South Africans leading car insurance information portal
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Tags: Car, Car Insurance
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