Do you have a lemon or a peach? A clunker that gets you around, or a shiny new fresh off the lot vehicle? Knowing which car insurance is best for you may seem like a daunting task, but really, it is very easy at times. With just a few of these questions, the choice will be easier.
Did you receive a loan for you new or nearly new vehicle? If so, chances are the bank wrote into the contract what policy you would need to have to stay in good standing with the loan. They do this not for your benefit, but to cover their investment(your loan) in case you are unable to pay. So, much of the time, you may already know which policy to purchase.
A general rule is that older vehicles need liability and new vehicles need comprehensive. With a new car, you have several thousand on the line if not more. With an older vehicle, you are risking on a month or two of pay rather than several months to a year.
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.
Where do you live? If the crime or accident rate is higher in your city, or state, you will be paying more for each. Comprehensive, as always, will increase dramatically. Liability will also increase, but is far cheaper. Check the types of crime, if that is the case, for your area. Liability does cove fire and theft, but not car damage. Comprehensive, on the other hand, covers most of the unforeseen events that could happen to your vehicle.
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.
If you are already paying scraping by with what you have, can you afford a monthly payment of a hundred, or two hundred, or more? Most places do offer a discount if you pay for several months at a time, but you may need to save up for it. So, be responsible with your money, as well as your selection of vehicles.
Obviously many factors will affect which car insurance coverage you will choose. Whether it is the rates, the company history, your driving record, or even your location anything can be considered a factor. If you are still stuck, or have any other questions, the people at carinsurancesa.co.za are highly knowledgeable in the field and will be able to assist you in your decision: liability, or comprehensive.