My Son or Daughter Just Got Their License! Now What?
Do you have an option when taking out car insurance? No you do not. Car insurance is governed by the law to protect your vehicle.
When taking out car insurance for the first time, the client must decide on a rate. Usually a parent will make the decision for their children. Compulsory insurance is a good place to start. It’s required in most countries and forces you to pay a fairly high premium each year. It covers damages for other vehicles in the event of an accident.
Compulsory insurance is expensive, because it does not represent the replacement value, but instead takes into account the damage that may be caused to other vehicles involved in the accident and personal injury claims.
What if you are involved in an accident, but it’s the other driver’s fault? Then there compulsory insurance is liable to pay for the damager done to your car. In fact, insurance company’s hold a lot of sway to who is responsible for the accident as well as driving age and experience.
If the parent wants to further their children’s insurance coverage than signing up for third party insurance is a terrific idea. Chances are your son or daughter will make a few mistakes when they first start out driving alone. Hopefully these mistakes will not result in harm to your children or others. Third party insurance covers accidents involving the sole car of the driver.
The higher amount of deductibles you agree to pay in the event of an accident, allows you to reduce the cost of your annual insurance by more than if you had a low amount of deductibles. A “No claims” bonus is awarded to the driver every year they avoid an accident in a third party insurance policy.
Comprehensive insurance is the last form of coverage a driver should consider for his or her policy. The type of insurance covers damage to vehicles involved in the accident as well as damages or good stolen in theft related instances. Comprehensive insurance is calculated on the value of the car, age of the driver, and strength of its security system.
Graham McKenzie is the content Syndication Manager at Insurance123.co.za South Africans leading car insurance information portal
