Car insurance is a basic necessity which every vehicle owner is obliged to have. It not only covers the damage expenses of your vehicle in the event of an accident, it also covers the damage of other parties’ vehicles involved if the accident was your fault, potentially saving you a lot of money.
Car insurance is basically insurance that drivers can purchase for any kind of vehicle in order to protect it against losses sustained in traffic accidents. Auto insurance policies are, in reality, a bundle of different coverage’s. This insurance will usually cover the insured party, the insured motor vehicle, and any third parties involved. Different policies will identify the situations in which each of these entities is covered.
The specific coverage’s available in purchasing car insurance are as follows:
Liability coverage is the most basic and foundational coverage in all car insurance policies and is required in most countries. This type of coverage ensures that if you are the one at fault in the event of an accident, your liability insurance will pay for the physical injury and property damage expenses of any third parties involved. This coverage includes legal bills.
Keep in mind that third parties can sue you for “pain and suffering” damages. Minimum insurance may not sufficiently cover you in more extreme cases, which is why many people recommend that drivers purchase more than South Africa’s minimum requirement.
Liability coverage limits are usually conveyed with three numbers. For example, liability limits of 280/700/140 indicate that there is coverage of R280 000 in bodily injury coverage per person, R700 000 in bodily injury coverage per accident, and R140 000 in property damage coverage per accident.
In the event of an accident, collision insurance will pay for the repairs that your vehicle requires. Collision coverage is usually the most expensive coverage that you will have to pay for. Insurance companies will declare a vehicle “totaled” or “written-off” if the replacement would be cheaper than the repairs needed.
This coverage will pay for any damages to an automobile that were not caused by an accident. Qualifying damages include damages arising from car-jackings, vandalism, fires, natural disasters and hitting an animal.
MedPay, PIP, and No-Fault Coverage:
MedPay will pay for the medical expenses of you and anyone else in your car after an accident occurred, regardless of whose fault the accident was. PIP (Personal Injury Protection) and “no-fault” coverage are other forms of medical payment protection. They are broader than MedPay and may be required in certain states. These expanded coverage cover child care and lost wages.
Uninsured and Underinsured Motorists Coverage:
UM (Uninsured Motorists) coverage will pay for injuries you have sustained if you are the victim of a hit-and-run by a driver who does not have auto insurance. UIM (Underinsured Motorists) coverage will pay for you if the driver who hit you creates more damage than their liability insurance can cover.
Rental reimbursement is an additional insurance plan that will cover rented vehicles in case of damage or theft. Auto replacement coverage ensures that your automobile will be fully repaired or replaced even if the costs are more than its depreciated value. Coverage for towing and labour covers you in case of an auto failure on the road where towing is necessary. These supplemental coverage are usually offered as separate items or included in larger policies.