Driver Insurance Company

For anyone for owns a car, car insurance should be non-negotiable regardless of what the short term insurance regulations might be depending on where you live. There are too many risks on the road that can end up with you having to fork out a lot of cash for damages to your car or someone else’s depending on the circumstances. There are also many elements outside of our control from other driver’s to the forces of nature and society.

Whether you car gets vandalized, broken into, stolen, hits a lamppost or is in an accident, car insurance can cover you financially giving you valuable peace of mind that you are prepared for any eventuality. If you are considering car insurance for the first time you might well be feeling a bit confused and daunted by the lingo that gets spat about. An explanation of some of the more commonly used phrases are outlined here.

How many South African car insurance companies try to sell their policies to car owners is by marketing their no claims bonus. This refers to a bonus that the company pays out to you for every year that you do not claim against your car insurance. For car owners who do not need to claim over long periods of time, find this a very attractive feature as this helps to reduce their monthly payouts quite significantly. Some policies are known to offer protected no claims bonus, which means that should you be in an accident and need to claim from your insurance your no claims bonus insurance does not become affected. This is usually offered at a higher cost per month but might be worth the extra pennies if in the long run you have the potential to save significantly on your premiums.

Excess is another commonly used term to describe the set amount you have to pay when claiming from your car insurance. Some policies offer voluntary excess, which allows the policy holder to top up the amount of excess they are willing to pay. The higher this voluntary excess is the lower the monthly premiums become. Different car insurance policies are generally described as being either comprehensive, third party or third party fire and theft. Comprehensive is the most extensive cover you can get, while third party insures you for any accidents that are your fault. The last option is the same as third party but with cover for fire and theft as well. These conclude some of the main terms used and should help to give you a basic idea of what car insurance entails.