::Barloworld ::Car insurance: The Basics
Car insurance is part and parcel of financing a car. All car finance agreements require that the car be comprehensively insured for the duration of the finance agreement, and at least to the outstanding amount.
Insurance premiums vary widely according to the type of car, its value, the age of the driver and his or her risk profile and accident record. Younger people are considered less experienced drivers and are usually more expensive to insure. Car insurance companies often require the drivers of a vehicle to be specified, in which case the insurance cover would not be valid if someone else was using the car at the time of an accident.
Some car insurance companies give discount on premiums if a car is fitted with ABS brakes and/or a stability control system. A tracking device might form a compulsory part of the insurance package on some cars and could serve to lower the premium in others. VESA-approved immobilisers, alarms and anti-hijack systems may also be required.
Many insurance packages offer a no-claim bonus that is paid back to the client if he or she has not claimed for a certain period. Some claims are usually excluded: a windscreen may normally be replaced without affecting the no-claim bonus. The windscreens on some imported cars can be very expensive (more than R10 000 in some cases) and some car insurance companies will pay for windscreen repairs with no excess payable by the client. This is done to encourage clients to fix chips that may later develop into cracks, which would then necessitate a windscreen replacement. A windscreen repairs usually costs less than R200.
There are insurance packages that settles the outstanding debt on a finance agreement in case of death or disability. Such agreements could also include dread disease cover and retrenchment benefits. Shortfall insurance is also available that covers the difference between the amount paid out by the insurance and the balance still owed on the finance agreement. It pays to know about all the car insurance options available to you.
For more information on the various packages please fill out the form below and we'll come back to you.
