One of the biggest investments you will make in your life is buying a car. But, unfortunately, the moment that car leaves the lot, it depreciates. So once you have been able to save up and purchase your vehicle, one of your most important priorities should be protecting it with an insurance policy.
Of course, you can’t predict when or where accidents will happen, but with a good car insurance policy like https://www.miway.co.za/car-insurance in place, at least you can rest assured that if something happens to your pride and joy; financially speaking, at least, you are protected from any loss either partially or fully depending on what type of coverage best suits your requirements.
In this article, we will take a look at the different types of car insurance policies. However, if you want to learn more, make sure you visit https://www.miway.co.za.
Car Insurance: What Does It Cover?
There are two different types of car insurance policies — liability and comprehensive coverage. A basic policy has a minimum liability limit for bodily injury or death per person, total bodily injury or death to others in an accident you caused, and property damage due to an accident that is your fault. The limits usually start at $25k, so if the damages exceed this amount, you will have to pay them out-of-pocket with your own money.
Car Insurance Coverage: Comprehensive vs Liabilities
- Comprehensive coverage is a type of insurance that protects against theft and vandalism to your vehicle, among other things.
It’s also known as “full coverage” because it covers everything from damage caused by natural disasters like floods or fires up through falling debris hitting it causing dents or broken glass needing replacement at some point down the road due to bad luck alone – even if there aren’t any witnesses around who might notice what happened before leaving themselves.
- Liability coverage protects you from financial loss if someone sues after an accident caused by your negligence.
It pays out up to $25k per person, $50k total bodily injury or death (others), and $15k property damage due to an accident that is your fault – even if there aren’t any witnesses around.
However, comprehensive coverage typically has higher premiums than liability-only policies because there’s more risk involved with this type of policy (i.e., someone could steal your car).
The Final Words
Now that you know all about car insurance, it’s time to get a policy of your own. Shopping around for the best rates is always a good idea, but make sure you compare apples to apples. Be sure to ask questions and read the fine print to know exactly what you are getting into.
Finally, and most importantly, be honest with your insurer. If something changes in your life – like you add a new driver to your policy – let them know as soon as possible. Failing to do so could lead to cancellation of your policy or even denial of a claim.
Insurance is an important part of driving, and it’s worth taking the time to learn about all aspects of it before signing up for a policy. Now that you’re armed with this knowledge, it’s time to start shopping!