Car Insurance – What you need to know

What is Car Insurance?

Car insurance is there to cover you in the event that things happen to your car which you cannot afford to pay yourself. There are different kinds of cover available: Comprehensive cover – this is the widest form of cover and covers both your own vehicle damage as well as damage that you may have caused to another person’s property or vehicle. This cover includes accident, hail, fire and malicious damage as well as theft of the entire vehicle, or theft of parts off the vehicle and includes damage to your windscreen. Third party, fire and theft cover – this is a restricted form of cover and protects you against damage that you may cause to another person’s property or vehicle and also covers your own car for damage caused by fire or theft of the entire vehicle. It excludes windscreen, hail and malicious damage. Third party only – this is the cheapest form of cover and only covers you for damage that you may cause to someone else’s vehicle or property. This is also the most reasonably priced form of cover available and everyone in South Africa should be covered for at least third party only.

Why do i need Car Insurance?

When you buy a car, you have certain expectations and obligations regarding Car Insurance. If something happens to the car, you may not have enough cash available to cover the cost of repair to your car, or to replace the car if it has been stolen or written off. In addition, you still have a legal obligation to pay for the damage that you may have caused someone else’s property or vehicle. This is why you need Car Insurance. If you borrow money to buy a car, then the bank insists that you insure that car for comprehensive cover, as the car does not technically belong to you until such time as you have repaid the loan in full. The bank gives the client the freedom to choose an insurance company, but if you do not prove that you have insurance, they will arrange the insurance for you – which may end up costing you more. There are many questions involved in insuring your car, such as for how much should you insure your car? and what type of car insurance do I need? Consulting a Profin broker who is experienced in Short Term Insurance and Car Insurance will ensure that you choose the correct Car Insurance Product for your specific needs. Contact a Profin Broker today to get advice or a quote.

For how much should I insure my car?

Different companies offer different solutions with regards to insuring your car. Some offer you: Trade value: which is the value of the car if you had to trade it in on another vehicle. Market Value: which is the trade and retail value of the car added together and then divided by 2. Retail value: which is the actual value of your car, if you had to buy it on the show room floor. Profin Financial Services advises our clients to insure their cars for retail value which allows a variance in value based on the condition of the car as well as the mileage on the car. We also look at the outstanding loan amount to make sure that any outstanding loan to the bank would be covered by the insurance.

What is excess?

An excess or deductible is the first amount that the client has to pay in the event of a claim. These vary from company to company and if you choose a higher excess, you may get a discounted premium. You may also choose an excess waiver or buster, which means that you can pay a higher premium for your car insurance but if you have a claim, then you do not pay in an excess or you pay in a lesser amount. The excess waiver/buster is not normally available to drivers under 30.

Do I need car hire?

The easiest way to answer this question would be to ask yourself the question: If my car is in for repairs or is stolen, how would I get around? If you can’t get around and carry on doing your normal day to day duties, then we suggest you ask for car hire. Car hire is arranged for you by the insurance company when you take your car in for repairs, when your car is not driveable or if it is stolen. Some companies only offer car hire following the theft of a vehicle or in the event that a car is a write off, so it is important to check this when selecting the correct insurer. Car hire is normally available for 30 days, but some companies only offer car hire for 15 days and others are prepared to extend the cover up to 90 days.

What is the difference between insurers?

There are many different insurers in South Africa and all of them have different product offerings, different excess structures and different ways of insuring your car. We believe that the best insurer is the one that meets your individual needs and as such we do a full risk and needs assessment, try to partner you up with an insurer that best suits your needs and your pocket.

What is Roadside Assistance?

When you take out insurance for your car, there are some companies that offer roadside assistance. This means that in the event you have a flat tyre or battery, or if you break down, they will send someone out to assist you. Each company has their own roadside assistance available and some companies offer a superior roadside assistance. We believe you should familiarize yourself with the roadside assistance that your insurer offers, so that you are aware of this important service.

What do I do in the event of a claim?

n the event of a motor claim always contact Profin Short Term Insurance first. We will guide you through this traumatic period from the scene of the accident to arranging the towing of the car and getting quotes, and everything in between. We believe that during this time we can provide the most invaluable service to you. However, if you feel that the accident was minor and your vehicle is still driveable; we would advise you to get any details of any other parties that may be or were involved. In particular, the registration number of the car, the address of the driver and the address of the owner of the car (as sometimes these are not the same person). Take down the driver’s cellphone number and phone him from the scene of the accident to make sure that you have not been given a fake number. If possible, take photos on your cellphone of the damage to all vehicles and property, as well as the scene of the accident. Find out if anyone other than passengers saw the accident happen and get their details. Make a full diagram of the scene of the accident and report it to the police within 24 hours. In the event that you have reported the accident directly to the insurance company, please make sure you let us know so that we can follow up with the company and ensure that the claim is handled as efficiently as possible.

Contact a Profin Broker today to get advice or a quote.

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Why should graduates apply for an Internship?

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What do you need to apply?

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For more information, please contact Profin Financial Solutions on 041 501 5300 or