In most cases, car insurance is paid off monthly via debit order from your personal or business account. There are options to pay off your premium with one annual payment made at the beginning of each year. The benefits of doing this are that you ensure you are covered for the whole year and you eliminate the risk of lapsing on your monthly payments.
What are my options when it comes to paying for my car insurance?
When it comes to buying a new or used vehicle, one of the most important considerations a potential buyer will need to think about is how they are going to insure their vehicle. Should you go with a comprehensive cover or should you take limited cover or third party cover?
- Comprehensive cover is the highest level of protection you can get for your car and will protect you against theft, accidents, fire, and third-party cover.
- Limited cover is when you only insure your vehicle against certain elements like fire and theft.
- Third-party cover is when you insure yourself for damage to other people's cars. The third-party cover will cover the cost of damages to the other cars involved in an accident but the cost to fix your car is for your account if you cause the accident.
What won't my car insurance cover?
Comprehensive cover will cover you for most types of accidents or theft and even hijackings but there are some things that it will not cover. Your insurance won't cover the costs of maintenance and servicing. It also won't cover the general wear and tear that all cars acquire over time.
What happens if my car is stolen or written off?
If a car is stolen or damaged beyond repair, this is usually termed a "total loss" and the insurer will pay out the insured market or retail value of the vehicle, depending on what you are insured for.
What happens if I am underinsured?
Most insurance companies will have a guide as to what the market-related value of a vehicle is. It is advised that people wanting to take out insurance understand the market value of a vehicle so that they can get cover that will guarantee that they are paid out what the car is worth should it be stolen or written off. Being underinsured is risky because if you still owe money to the bank on a car loan, the amount paid out from an insurance claim might not be enough to cover the cost of the vehicle. This would mean that the vehicle owner would still then have to pay additional money back to the bank.
Is car insurance worth it?
Insurance is peace of mind and it is recommended that all vehicle owners take out insurance to make sure they are properly covered.
Shop for your new ride with Auto Mart today.