Introduction to Car Insurance in South Africa

The car insurance sector in South Africa is mostly governed by a statutory of laws that involve various laws and Acts that have been promulgated by the Parliament and law making bodies of South Africa. When it comes to motor insurance, South Africa is one of the strictest countries across the globe and it is mandatory for every driver to drive his or her car or vehicle with an adequate amount of coverage. Therefore every car driver should get their vehicles insured at the very first instance to avoid any legal hassle or high fines imposed on them. However, the cost of premiums to insure a vehicle often makes a person seek out cheap prices by obtaining car insurance quotes from several companies.

Before we discuss the different plans and how to get cheap coverage for your vehicle in South Africa, it would be wise to take a look at the Laws regarding coverage and how they impact the rights of a countless number of motorists, financial service providers and consumers. Car Insurance laws of South Africa Include:
* Short-Term Insurance Act (Act 53 of 1998 as amended)
* Policy Holder Protection Rules (Short-term Insurance), 2004
* Financial Advisory Intermediary Service Act (Act 37 of 2002)
* Financial Services Ombud Schemes (Act 37 of 2004)

Adequate coverage is a must for all vehicle owners because the plans that can be obtained from providers will cover vehicles against traffic accidents, damages, theft or any kind of liability that arises from driving the cars. In South Africa it is an industry that is booming, and today one can find lots of options to compare car insurance. You can compare policies and compare car insurance quotes from companies like Dial Direct, MiWay, Budget, Hollard and others to find out which one of them provides the best coverage options and why you should get your car insured by them.

Because of the competitive market scenario of South Africa, consumers can easily locate reliable and affordable companies that offer reliable and reasonably priced coverage. Just remember never to hurry into making a decision on which policy is right for you. A little patience and organized research will provide you with some reliable and trust worthy companies whose agents can offer a sufficient amount of coverage for your vehicle.

Shopping For the Right Plan

Shopping for the right or ideal plan of coverage seems contrary to the thought that it is not possible to find affordable rates to insure vehicles. The important thing to remember is to be selective. This will make a positive impact on your search for the perfect plan for your individual needs. While shopping for car insurance plans in South Africa just keep in mind the following few parameters that play an important role in finding a reliable agent in your area.

Compare Car Insurance Quotes

This is the most important element of consideration in shopping for coverage in South Africa. While comparing agents, ask for quotes from the reputed companies; this is one of the smartest ways to shop for a plan that will offer you the most coverage at the lowest possible rates. Compare the quotes of the companies and their policies to find out what you can expect.

Automobile Coverage

The coverage plans are actually the liabilities that are covered by the company against your car when a tragic accident or damage has occurred. Coverage in South Africa usually covers the following:-
Ø The Insured owner or driver
Ø The insured vehicle that you drive (car/truck/SUV)
Ø It also covers third parties that are injured in the event that your vehicle harms others in an accident, and then the insurance company takes the liability to pay the compensation for the un-liquidated losses to the third parties.

Because insurance policies differ in respect to what are covered under the policy you need to be very careful while reading the coverage in the quotes. Make sure that the quote of the company or car insurance covers the maximum amounts. Few companies don’t offer liabilities or coverage for some damages like fire, earthquake, flood and similar natural calamity damage to your car. While there are companies whose coverage does extend to all these damages besides regular coverage such as theft, accidents and third party liabilities.

Basis of premium charges

In South Africa the premium is determined by insurance companies that follow the government’s specified regulations and other normal fees. Besides the regulations there are other factors too that determine the amount of premium to be charged for coverage plans.

The factors that determine a person’s car insurance quotes they receive are – condition of the car and its safety measures; the coverage plan chosen, the driver or the owner of the vehicle – his age, driving history, gender and geographical location; and the usage of the car (personal usage for commuting and business usage.)

At times the premium policies of some companies are quite complicated. For instance, take the example of the factor of a person’s age that is used to determine the premium. Bachelors and older people tend to be at a higher risk of accidents and hence they are charged higher premiums than married men and those who are more than 25 years of age, and less than 60. That is because it is estimated that young fellows are reckless in driving and the older fellows are vulnerable to accidents because of poor reflexes and vision problems. While married people are sensible because they have a family and they drive cautiously.

Car Maintenance

Car maintenance plays an important role to help you locate affordable rates when you compare car insurance quotes available on the market. If your car is in good condition and it is equipped with measures like anti-theft/burglar alarm and other safety measures, you can expect a positive response for discounted or affordable coverage premiums. The insurance companies give positive points to those vehicles that are well maintained and equipped with such updated technology that reduce the chance of accidents and car lifting.

Thus, you see how automobile car insurance policies in South Africa can deviate from the base of premiums, coverage and other associated elements. A sensible research and comparison of quotes can help you find sufficient coverage.

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