You have recently bought yourself a new or used car, and now you need the government mandated car insurance. There are a multitude of providers of sifted through, and you finally picked one. Which will it be though, comprehensive or limited liability? Read more to find out.
If you are like most people, you probably got an auto loan through a local bank. If this is the case, be sure to check your contract, because it may require you to purchase on type of coverage over the other. If it is the comprehensive, you only need to worry about what extras to get. If it states limited liability (which is a rarity) then that is the minimum you need, and should ask yourself a few more questions.
Is your vehicle old or new? With older vehicles, limited liability is the way to go. If you lose it for any reason, you are out much less than with a newer vehicle. After all, why pay over a hundred a month if you only paid 900 for the vehicle?
Now, if your car is bordering that old and new line, then you should definitely look at your driving record. Insurance companies always charge more for the drivers with a not so reliable driving record. So, if you are prone to speeding or have had a few accidents and your car is middle age, then get limited liability. If not, then go for the comprehensive.
Another factor to consider is the area you live in, both the city and the state (or whichever system your country may use). If the city has a lot of crime or the state has a lot of accidents, or vice or versa, then your rates will be higher regardless.
In the case of high crime though, you can safely get comprehensive because chances are it will pay off because of the area. If the accident rate is high, while liability may not cover accident damage, the rates will be higher so keep in mind your checkbook.
You should also take a look at the advertisements and history of each company you look at. If they say they can insure \’anyone\’ try not to go there unless as a last resort. You will be paying not just for any decisions or mistakes that you make, but also for the same mistakes and decisions each and every other driver through that company will make. So, be wary of those late night \’insure anyone\’ commercials.
As you can see, several factors will affect what car insurance you should have. Some of them are in your control, like the age of your vehicle and your driving record. Some, like your location, are harder to change. These are, however, just a few factors to consider when making your decision. If you would like to know more, please visit carinsurancesa.co.za for more in-depth information.
How do you know which car insurance you need? How do I Compare Car Insurance prices? Is it a matter of the cars age, or your driving ability? By asking yourself just a couple short questions, you\’ll be able to pick comprehensive, or limited liability.