You're son or daughter just turned the age of the legal driving limit. It's an exciting day for them, but not so exciting for the parents. You know about all the dangers of driving a motor vehicle at a high rate of speed. You're concerned and you should be, but you are not the only one. So is the insurance company providing coverage for your son or daughter.
Every car traveling on the road is covered under compulsory insurance. If they are not, the vehicle's owner is in deep trouble. Unlike third party insurance or comprehensive insurance, compulsory insurance is designed to cover other cars or individuals hurt in an accident. It does not protect the vehicle the car is insured under.
Compulsory insurance is expensive, especially for young drivers or drivers with reckless driving histories. Because it does not take into account the replacement value of the car, the insurance focuses only on the driver's experience and driving tendencies.
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 car owner wants to insure their vehicle against damages in an accident, they sign up for third party insurance. Third party insurance only covers your car in an accident if you are the only vehicle involved. Insurance companies pay out most third party claims after deducting a preset amount of repair damages known as "deductibles."
You can sign up for a wide range of deductibles which are taken out in the event of an accident. The higher your deductible, the lower you will reduce the cost of annual insurance. Every year your son or daughter avoids an accident they will receive a "no claims" bonus which is good towards the next year. The bonus reduces the premium and reduces costs every year the trend continues.
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. - 15224
Every car traveling on the road is covered under compulsory insurance. If they are not, the vehicle's owner is in deep trouble. Unlike third party insurance or comprehensive insurance, compulsory insurance is designed to cover other cars or individuals hurt in an accident. It does not protect the vehicle the car is insured under.
Compulsory insurance is expensive, especially for young drivers or drivers with reckless driving histories. Because it does not take into account the replacement value of the car, the insurance focuses only on the driver's experience and driving tendencies.
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 car owner wants to insure their vehicle against damages in an accident, they sign up for third party insurance. Third party insurance only covers your car in an accident if you are the only vehicle involved. Insurance companies pay out most third party claims after deducting a preset amount of repair damages known as "deductibles."
You can sign up for a wide range of deductibles which are taken out in the event of an accident. The higher your deductible, the lower you will reduce the cost of annual insurance. Every year your son or daughter avoids an accident they will receive a "no claims" bonus which is good towards the next year. The bonus reduces the premium and reduces costs every year the trend continues.
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. - 15224
About the Author:
Graham McKenzie is the content Syndication Manager at Insurance123.co.za South Africans leading car insurance information portal
