After an accident, your insurance company will send out an assessor to determine the damages of your car. This assessor (also known as an adjuster) calculates the damage of your vehicle in monetary terms. After this is determined your insurer will decide whether or not to write the car off.

If this cost of repair is greater than the market value of the car before the accident, then they will write it off. Under these circumstances, it’s not worth the insurer to pay out for repairs if it is cheaper to pay out for the whole cost of the vehicle.

This amount is a fair market value which will enable you to replace your car with one of the same value. If the car is still financed (which would mean you have comprehensive insurance), then the insurer will first settle the outstanding balance before paying you out. If the amount owed on the loan is greater than what the insurance is prepared to pay out, you will have to pay the rest. You can add a waiver or additional clauses to your insurance policy (which will increase your premiums) to avoid this.

The written-off vehicle then becomes the property of the insurance company who will then re-sell it to an salvage company to offset their own costs.

That is, for example, if the car you drive is expensive, the amount the insurer will have to pay in the event of loss is greater, meaning their risk is higher, which results in a more expensive premium. If you’re younger, statistics indicate that you are more likely to be involved in an accident as a result of reckless driving, making you more of an insurance risk to the insurer, and so on.

What does carinsurance cover?

Car insurance traditionally comes in three types of policies: comprehensive, third party, and third party, fire and theft. Comprehensive car insurance covers the car for accidental damage, damage caused to third parties, fire, theft and hijacking and most other insurable perils.

Third party only covers the damage you cause to other people’s property, while third party, fire and theft includes cover for explosion, fire, theft and hijacking (but not damage to your own vehicle).

What affects the price of carinsurance?

While insurers in a competitive environment can offer cheaper insurance, most insurers look at the following factors to determine how much of a risk you are to them. Firstly, your age. The younger you are the more likely you are to drive recklessly. Reckless driving, statistically has a correlation to gender as well, which is often why women pay less for car insurance. The type of car you drive (as this determines the cost to repair it), the amount of your excess (as this is in effect taking more risk on yourself and off of the insurer) and how often you claim, determines how much of a risk you are to your insurer.

How much excess should I pay for carinsurance?

Excess is the initial amount you pay when you submit a claim to the insurer for accidental damage, theft or other insured loss. Insurers ask that insureds pay an excess to limit the number of claims they receive as some damage can be afforded by the excess. The higher your excess, the lower your premiums. But never put your excess higher than what you can afford, otherwise you’re still paying for all the risk yourself.

Even though the chances of accident may be slim, it’s not a chance you should be prepared to take given the value of your car and smaller cost of car insurance. In fact, financiers who lend you the money to pay for the car will only begin processing payment once they receive a letter from your insurer indicating that the car is comprehensively insured to protect their interest in the asset.

Type of car and insurance

So what type of insurance should you take out if you purchase a new car? Even if it’s not financed, only comprehensive insurance covers your vehicle for accidental damage. Third party car insurance and third party fire and theft do not protect your vehicle from accidental damage that you cause. They cover third party property in the event that you cause an accident.

Comprehensive car insurance covers your vehicle for accidental damage, whether you are responsible for it or not, which makes it the best cover for new cars. When purchasing a car and insurance, you may cover the vehicle from the day on which you take possession of it.

You can (and should) get quotes for your new car and take out a policy before you collect it. You will only begin paying for premiums once it is in your possession. All you will pay beforehand is a pro-rata or administration fee once you enter into a contract with the insurer.

When you buy a car and insurance, you do not have to purchase insurance from the organization lending you the money for it. They may offer you a quote, but it’s best to compare car insurance before you buy a new car to see who covers you more comprehensively and offers the best benefits. As you do not want to pay two pro-rata fees, it’s best to find the right insurer before you purchase the car.

The insurer will then give you a letter stipulating the type of car and cover, the date of inception of insurance and the amount for which it is insured.

While traditional bike insurance protects the biker from claims made by third parties for accidental damage, accidental damage to their own bike and theft (or hijacking), it fails to make claims for personal injury and death on the road. While the RAF caters for this, the amendments to the system have made it difficult to claim from for individuals. RoadCover helps individuals (bikers and motorists) with the claims process when dealing with the RAF.

RoadCover’s car and bike insurance

RoadCover manages bikers’ and motorists’ claims to the RAF, offering members full compensation should they be involved in a road accident. This covers past and future hospital and medical expenses as a result of an accident, as well as loss of income or support of a now deceased or disabled breadwinner. The RAF also caters for funeral expenses of a deceased.

The Road Accident Benefit System changed the RAF to a no-fault system, making grounds for common law action impossible. Before, the Road Accident Fund would pay a claim, and the difference could be settled with the guilty party. The RABS system does not allow innocent parties to claim full damages from offenders.

The RAF no longer makes cash payments for damages, but rather pays for medical expenses to a degree, often leaving the injured party wanting. RoadCover is a great addition to the bike insurance you already have. Given the risk bikers face on the road, it is important for them to supplement their bike insurance with another policy that covers their health and wellbeing comprehensively.

Think Bike offers this additional bike insurance to members, while encouraging them to follow the rules of the road.

Budget car insurance has simplified car insurance into four policies: comprehensive cover, third party fire and theft, third part and offroad vehicle insurance.

Budget car insurance: comprehensive

Budget insurance comprehensive cover includes cover for all damage (to yours and third party vehicles), theft and hijacking. It includes roadside assistance and medical costs up to the value of R500 per person. It also includes towing and storage, car hire and cover for the canopy.

Budget car insurance includes a basic excess, as well as an additional excess on top of it and does not cover portable possessions that were in the car at the time of its loss.

Budget car insurance: third party, fire and theft

Insured for the same perils as comprehensive insurance, the third party, fire and theft cover does not include all damage. While comprehensive car insurance includes accidental damage to your own vehicle, this cover does not.

The third party insurance does not include cover for theft either, but only damage caused to third party’s vehicles. It does, however, include towing and storage, medical costs to the value of R500 and roadside assistance.

Budget car insurance: off-road vehicles

The off-road cover, or Trailsure, by Budget insurance caters for the same perils as comprehensive insurance, with extra cover for the risks associated with taking the vehicle off-road. This means the medical cover goes up from R500 to R5 000 per person, cover includes most SADC countries as well as accessories fitted to the vehicle for the amount of R10 000.

Unlike some car insurance companies, budget does not include accidental death or injury in their car insurance policies. Such a benefit would cover the driver and his or her household for medical costs or death if such were to take place in the vehicle. For more information on Budget insurance, visit the site by clicking on the link. Otherwise source a range of insurance quotes with difference benefits by filling in our online form.

Credit shortfall insurance covers the difference between how much is owning on the financed vehicle and how much the comprehensive insurance policy pays out in the event that the car is completely lost. This loss can be a result of theft, hijacking or write-off. The GAPP plan includes the following lines of insurance.

Toyota insurance: shortfall cover

This only covers the difference between the comprehensive policy and the amount owing to the bank. Often the comprehensive insurance policy will only pay out the market related value as opposed to the retail value of the vehicle. This does not cover the total amount outstanding to the bank, which is why comprehensive insurance is required.

Toyota insurance: violation of conditions cover

Instead of taking the insurer directly to the Ombudsman, it may be easier to take out Toyota credit shortfall insurance as it comes with a violation of conditions cover clause. That is, if you fail to live up to your obligations as an insured, or violate your cover which leads to the insurance company rejecting your claim, you can make the claim under this clause. There is however a percentage-based excess charged. (Note that the maximum insurable value on this policy R1 million.)

Toyota insurance: bodyline maintenance cover

Is not an excess waiver, but covers those damages that cost less than the excess on a comprehensive insurance policy. If accidental damage to the body of the vehicle costs less than the amount that the comprehensive insurer is asking in excess, then this can be claimed from Toyota’s insurance. There is no excess payable on this, and the cover includes only the amount to repair the vehicle.

Toyota insurance is available to anyone who purchases a new or used Toyota, which is financed through the Toyota Financial Services and is available from any Toyota Dealer in South Africa. For more information visit the insurance page on Toyota’s website.

Insurance for motor trade buildings, cars and contents

Functioning like a home and contents insurance policy, a motor trade buildings insurance policy will cover the premises from where the business operates. It covers the structure and surrounding fixtures (such as garages and carports), but not the contents. A business contents insurance policy will cover these (and functions in much the same way as a home contents insurance policy).

Another business insurance policy motor trade businesses should take out is cover for their vehicles. Given the number of vehicles and the increased risk, a specialist underwriter will cover all the vehicles under one policy to spread the risk across all the vehicles. Given that the vehicles are not in use (but rather for sale or in for repairs), they are not covered on the road unless as goods in transit.

Insurance for motor trade liability

Liability insurance policies are those which cover the cost of third party claims for personal injury or damages. These can be suffered on the premises or a as a result of negligence. Liability insurance for motor trade employers includes employers liability (to protect the business from claims made by employees), public liability (for claims by third parties) and service indemnity (for claims for poor service or bad workmanship).

Insurance for motor trade road risk cover

As mentioned, the vehicles in used by the motor trade are rarely driven (this goes for car sales and repairs). Often cars are transported via train or truck and so must be covered in a road risk insurance policy or a goods in transit insurance policy. A policy should also be taken out for equipment and tools if you business specializes in repairs.

For more information on insurance for the motor trade, speak to your insurance broker or insurance company. For a range of car insurance quotes, fill in our online form and an insurance representative will contact you shortly.

Your automotive insurance premiums are solely dependent on what you need to be covered and what you actually can afford. Most common types of the US automotive insurances are listed below:

There are three types of Liability Coverage:

1. Uninsured/underinsured motorist coverage is used if only the one liable for the damage is not insured.
2. Bodily injury liability is used to cover the injuries, or even death of the victim.
3. Property damage liability is used to cover the repairs of other people’s car if that’s you who caused the car accident.

Collision covers a reparation of your own property, if you are liable for the damage.

Comprehensive - covers any damage caused by animal contact, theft, vandalism, fire and natural disasters, etc.

Medical coverage is for medical expenses for both parties involved in an accident.

Rental coverage or loss of use coverage usually compensates the car repairs of the rented vehicle, basically for just $15 a day.

Fully Comprehensive -  this one is the most expensive automotive insurance that is able to protect you from all kinds of liabilities or losses.

A lot of vehicle owners are complaining about the cosst of their automotive insurance. In fact, the amount required to pay for your automotive insurance is based on the type of insurance you have decided upon, and the insurance company of your choice. The most popular choice is fully comprehensive coverage, but it is quite expensive. However, repairing your vehicle by yourself will cost you more in the end.

If you are buying a used vehicle, you want to check and see if the original warranty on the vehicle is still in effect and transferrable to your purchase – this could really save you money! If your car has a general warranty from the vehicle manufacturer, the information and details for this can be found in the owner’s manual. They typically cover every part of the vehicle other than the items listed as specific exclusions. There is typically also a powertrain warranty, providing limited coverage after the general warranty expires. The powertrain warranty usually lasts longer than the general warranty. For example, a general warranty may be good for 3 years or 36,000 miles compared to the powertrain warranty that may not expire until 6 years or 60,000 miles. This means that when you hit either 3 years or 36,000 miles (whichever one comes first) your powertrain warranty will kick into effect, and continue until the first of 6 years of 60,000 miles.

If you decide to purchase an extended warranty either because the manufacturer warranties are too short or too limited for what you want to cover or becuase you are buying a used car that has no warranty – you need to do your homework. It is recommended to purchase your extended warranty from a reputable company, with a reliable track record and positive reviews from other customers and consumers. As a consumer you also need to ensure that the warranty covers you if you move to a different state, the best cover all 50 states. There should be several different plan choices offered, and all of these details should be available and provided to you in writing. Make sure to read everything carefully so you do not fall into something confusing or misleading and go for the warranty with a money back guarantee if at all possible just in case something changes later!

Perhaps the easiest way to obtain information on vastly different policies that exist and compare auto insurance is by using the Internet. By using the resources provide by the Web, you can gain detailed information on different insurance companies and their policies as well as rates and quotes for your vehicle. You just need to hop onto one of the resource sites and simply fill out the form that is provided by the site. Within seconds the site will provide you with a list of different companies and their rates. Thus the entire research process is completed for you. Afterwards, you can review each of the policies in more detail before making you choice on which is best for you.

Another method that you can use to compare auto insurance is determining the right policy is to simply talk to people. By talking to friends, family, and acquaintances about the different auto insurances that they have you can gain information of several different companies. The beauty of this is that you get personal accounts of the insurers’ service. If you require more information, you can also through the policies themselves to get a better idea of which is good for you. Things to look at include such aspects as the premium, the terms of payment, and the length of the policy; however, it is best to examine an entire policy before making a decision.

Another useful alternative is to go through an insurance agent. Since most agents tend to work for more than one insurance company they would be able to provide you with comprehensive insight into different policies. Insurance agents process direct knowledge of what each company is offering as well as which offers are best for you. Thus, an agent is the best resource to use when determining which policy to choose, because they can advise you based on age, gender, car, etc.

In closing, there are many methods to use when searching for the right auto insurance. You can search through the web, talk to friends and family, or speak to an insurance agent. All can help you find a cheap policy. Regardless of which method you use, remember it is always necessary to review a policy fully before making you choice.