So you are ready to buy your first car. You have spent hours going from one auto showroom to the next, and your fingers are burning to wrap themselves around the steering wheel. Without wanting to burst your bubble, you need to think about car insurance as well.
The authorities want us to drive on the roads having some sort of cover which protects you and the person you might have an accident with. We all know that insurance can be a costly expense, but it is a necessary expense, especially if you drive an expensive car today.
You see thieves work in syndicates and they have preferences as to which cars they steal. To find out what cars are hot, get in touch with your nearest Crime Bureau and ask them to provide you with a list. Your insurance provider will also know which cars get stolen more often.
Remember insurance companies also know what cars are prone to theft and will subsequently offer you a premium according to their statistics. Living in urban areas where there are lots of cars on the road and which are heavily congested, makes you a target and is therefore classified as a high risk client.
They will also insist on certain criteria for you to follow in securing your vehicle, like installing an alarm system and parking it in a secure garage overnight.
So lets look at what insurance is on offer. Firstly, the most common today is called the Third Party Insurance. This essentially covers everyone who was hurt in a collision except you. They will lodge a claim against your insurance provider and then the case is heard in court, after which a settlement figure will be given to the victims.
The next type is a bit more bulky in that you can get all of the above with some added protection. This one is called Third Party, Fire and Theft Cover. It entails that your car will be repaired if damaged by fire, and will be replaced if stolen.
Because repair on our cars is so expensive, for instance body work; it can bankrupt you overnight if you have to pay for damages out of your own pocket. Here you can have a Comprehensive Insurance cover which will let you repair your car at a reputable auto repair shop.
Before the insurer lets you know what your premium will be, they calculate certain influences like the model of your car, your age, where you live and what route you take to work and back. They would ask for a high premium if all these factors count against you, as they would deem you a high risk client. So the opposite is also true, if you live in a low risk area, don’t drive a very expensive car which is not a target for thieves and so on, then your car insurance premium would be low.
Having ones own car is an exhilarating experience. But, before you rush off to the car salesman, think about where you are going to get car insurance and what it all means including car insurance rates .