Monday, 6 March 2017

Motor Vehicle Insurance - Everything you need to Know

You take out Vehicle insurance, glance over the policy and sit back and relax, confident that all is well. Unfortunately, it is not as simple as that. It is important to read your insurance policy so that you are familiar with the terms and conditions and possible exclusion clauses. Let us shed some light on the aspects of car insurance that you need to know about...
Know the promises you're buying
Taking out Vehicle insurance means that you will be paying your insurance company to pay out on certain misdemeanours in the event of uncontrollable circumstances. The onus is on you, the insured, to know exactly what these circumstances are and what your motor insurance cover will give you, despite their promises.
Keep the promises that YOU are making
When taking out vehicle insurance, you need to provide a lot of information. Insurance companies need to know the type of vehicle that you drive and who will be driving it as well as where the vehicle is kept overnight. This information is used to determine your cover and your insurance premiums. If this information is not correct or (deliberately) false, you will run the risk of not being paid out for a claim.
Factors that influence the cost of Vehicle insurance premiums
There are several factors that determine the cost of your car insurance. When your car is damaged or stolen, the insurer will pay out your claim based on various factors that are established before the policy is finalised.
Whether you drive a bakkie, a sports car, a family car or a 4x4, some vehicles cost more to repair or replace than others. Certain types of cars are more at risk of being hijacked or stolen than others.
The age and condition of your car:
The age of your car influences your premiums as well. An older car may cost less to repair or replace and it may be more challenging to find replacement parts. When insuring a second hand car, make sure that you get an AA test certificate so that you can negotiate lower insurance premiums.
How secure your car is
Where you live and whether your motor vehicle is locked away securely at night also determines your insurance premium. If it is fitted with anti hijacking and tracking devices, premiums are usually reduced.
The age of the driver
First time drivers are often penalised through higher premiums until they have proven to be responsible drivers. Conversely, drivers over the age of 25 who are generally more experienced often get discounts on their insurance costs.
Insurance claims evaluation and payout
If your vehicle is damaged the insurance company will first establish whether the quote you submit for repairs is reasonable, after which the damage will be repaired. If the cost of repairs to your damaged vehicle exceeds 70% of the car's value, the insurer may decide to write the car off and pay out the market value of the vehicle instead.
Vehicle insurance is a contract in which the insurer assumes responsibility for any loss or damage the insured may incur. It is important to read your insurance policy carefully to confirm that you have a thorough understanding of the terminology, exclusion clauses and all terms and conditions.


http://www.sooperarticles.com/finance-articles/insurance-articles/motor-vehicle-insurance-everything-you-need-know-1346876.html

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