Your First Car And The Insurance That Will Follow
The second largest purchase that most people will make in their lifetime is the purchase of a new vehicle. This falls directly behind purchasing and wning a house. The main difference is that statistics show that whilst people might change their house two or three times in a lifetime, the same owner will change vehicles at least ten times if not closer to twenty.
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.
When accidents do occur, they are often deadly and tragic. The vehicles are usually demolished and totaled, and if fixable, they will cost a lot of money!
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.
If you are buying your first car, this is especially important. Chances are you are young and somewhat inexperienced as a driver. Comprehensive coverage will protect your vehicle from one minor mistake you might make or from theft, especially if your vehicle contains a lot of desirable goods for thieves.
These desirable goods might include radios, disc players, GPS systems, mobile computers, and other expensive items inside or outside the car. Comprehensive car insurance will protect all of that with the right policy.
As you can see, ignoring comprehensive car insurance is a grave mistake. Save yourself the hassle and spend a little extra every year on your insurance policy.
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.
When accidents do occur, they are often deadly and tragic. The vehicles are usually demolished and totaled, and if fixable, they will cost a lot of money!
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.
If you are buying your first car, this is especially important. Chances are you are young and somewhat inexperienced as a driver. Comprehensive coverage will protect your vehicle from one minor mistake you might make or from theft, especially if your vehicle contains a lot of desirable goods for thieves.
These desirable goods might include radios, disc players, GPS systems, mobile computers, and other expensive items inside or outside the car. Comprehensive car insurance will protect all of that with the right policy.
As you can see, ignoring comprehensive car insurance is a grave mistake. Save yourself the hassle and spend a little extra every year on your insurance policy.
About the Author:
Graham McKenzie is the content Syndication Manager at Insurance123.co.za South Africans leading car insurance information portal