Car Insurance - Facts you need to consider

By: Chris Cdutoit
Submitted: 2008-12-02 12:20:20
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One of the most important aspects of insurance to consider, are the consequences of drugs or alcohol. It needs to be made absolutely clear that operating a motor vehicle while under the influence of drugs or alcohol is classified as negligence, and under no circumstances will any insurance company cover you in such a case. Additionally, if an insurance company is made aware of the fact that you were under the influence of drugs or alcohol at the time of an accident, your policy could in all probability become null and void. One should also understand that companies base their decisions according to the law, so even if you were not visibly intoxicated, if you were over the legal limit, you will not be covered. Beware because there are no exceptions to this rule.

No matter which insurance company you choose, they all offer what is known as “Third Party Insurance”, which is in essence, a liability cover. The purpose of this insurance is to cover the costs, or part thereof, for damages or injury sustained in an accident for which you were at fault. Depending on your specific policy, the amount of coverage available from the insurance company can vary significantly. In order to avoid unwelcome surprises, you are strongly advised to read all the fine print and to make sure you understand all the relevant details before accepting a policy. This is the minimum level of insurance required in order to operate a motor vehicle on public roads but also keep in mind, third party insurance does not include cover for damage to your own vehicle. In order to have your own vehicle covered as well, you’ll need to take out a policy known as “Fully Comprehensive Vehicle Insurance” which does of course also come at a higher cost. Furthermore, if you drive an expensive high end vehicle fitted with costly sound systems and other electronic gadgetry, you would be well advised to consider “Third Party, Fire & Theft” insurance.

What You Need to Know About Comprehensive Insurance

As the name implies, comprehensive insurance is in short, a full insurance which will cover you for nearly every imaginable tragedy. In the unfortunate event of an accident, comprehensive insurance provides cover for not only for you and your passengers, but also for any pedestrians or passengers in the other vehicle or vehicles. This policy gives you peace of mind in knowing that your insurance company will responsible for the medical or funeral expenses resulting from an accident. In addition to covering these expenses, comprehensive insurance will also cover you against theft or other such unfortunate events. Having read through the various insurance options available to you, it is apparent that the biggest savings are to be had if you limit yourself to third party insurance only. However, one needs to consider various aspects before arriving at a decision. If for example, you live in an area with a high crime rate there will be a stronger possibility of having your car stolen, so in this case you will probably want to be covered against theft. Likewise, if you have already had a few accidents in the past, comprehensive insurance may well be your best option.

Article source: Expert Articles