Some people choose to avoid car insurance in order to avoid additional costs. However, it is something that you should aim to always have.
Having car insurance provides financial protection in the event of your vehicle being damaged. It will also provide cover for injury to other drivers, passengers and pedestrians as well as their property.
Insurance can also provide compensation if your vehicle is stolen, vandalized or destroyed by fire.
Types of car insurance:
Third Party: This is the bare minimum and covers injury to other people as well as damage to other property. It is not always the cheapest.
Third Party, fire and theft: This is the same as third party but also includes the cost of repairs and a replacement vehicle if your car if damaged by fire or stolen.
Comprehensive: This is the most complete form of insurance which you can get. It covers not only damage to your own car but also accidents involving other people.
How is the cost of insurance calculated?
The amount of money that you will have to pay for insurance depends on a number of factors such as your age, where you live, the type of car that you drive, your occupation, where your car is kept, what you use it for and whether you have been convicted for any other offences.
You can lower your premium by paying a higher excess which is the amount that you will have to contribute towards the cost of the claim that you make. Young people in particular have to usually may higher for their premiums as they are viewed as high risk individuals and some may cut costs in order to get a cheaper deal.
Young people must be careful of “ghost brokers” who offer them false deals. Remember that if it is too good to be true, it probably is not.