With vehicle sales set to drop by around 12 percent this year, the cost of cars is likely to go up. And, with some estimates painting an exceedingly bleak picture regarding car prices over the next few years (such as a rise in prices of as much as 84 percent), South Africans might be hanging onto their cars for much longer in the future.
If the idea of rising car prices inspires in you a newfound love for your car, you want to make sure you have the right insurance. This is because, while you might save money by hanging onto your car for a little longer, you don’t want to turn around and waste it on your outdated insurance.
The best way to decide which type of insurance is best for you is to look at what you need out of your car insurance, and then weight it up against what you’re actually paying for.
There are many aspects relating to insurance that can affect how much you pay on a monthly basis. To give you a general idea, here are some of the different types of insurance available.
General Types of Motor Vehicle Insurance
- Liability Insurance
Being involved in an accident is an unwanted scenario for any driver, but causing the accident is a total nightmare – especially if you are not properly insured. If you cause an accident and don’t have liability cover then you have to pay for any damage you cause. Liability insurance will cover the damage you cause, making it extremely important.
- Uninsured Coverage
If you are hit by another vehicle whose driver is underinsured or uninsured, or if you are the victim of a hit-and-run, then you might still be liable for the repairs to your vehicle. However, covering yourself against such a scenario means that your insurance company will still cover the repair costs.
Fully comprehensive insurance is great in that it covers any damages to your car, even if they aren’t accident-related. This may be necessary, especially in South Africa, but comprehensive insurance can be expensive, which is why it is a good idea to get plenty of vehicle insurance quotes going in.
- Roadside Assistance
If you have an older car and don’t mind it having a few scrapes, you might prefer to simply opt for roadside assistance. In this case, you know your car will break down sooner or later, but you don’t want the headache of being stranded. Roadside assistance guarantees you’ll always have a tow-truck handy.
It’s important to remember that insurance doesn’t cover everything. This is why it’s always handy to have savings of around 10% of the car’s value on hand, just in case.