What is car insurance?

Car insurance is a contractual agreement between yourself and an insurance company of your choice, which ensures that your losses are covered if something should happen to your vehicle/motorcycle.

In order for you to be insured, you need to pay monthly premiums to the insurer, as per the contractual agreement.

Why is car insurance so important?

You always hear people saying, “rather safe than sorry”. Well, this is exactly why you need car insurance. We all know that accidents happen and that’s why it’s better to be prepared for the day they do. Having proper vehicle/motorcycle insurance ensures that you can have the peace of mind that your losses will be covered should something happen to your car/motorcycle. (Please note that Terms & Conditions apply).

What are the different types of car insurance?

There are three different types of car insurance, depending on which insurer you choose. Please note that different car insurers offer different coverage, so for more information on each type, contact the insurers.

  1. Comprehensive Car Insurance
    2. Comprehensive car insurance provides the widest cover and includes theft and hijacking cover, damages due to accidents, fires and explosions, and damages caused by natural disasters like hail and floods. It can also cover a range of other things, such as your cars glass, liability to other parties as a result of an accident, rims/mags, your car’s radio, and much more.
  2. Third Party Fire and Theft Insurance
    3. Third Party Fire and Theft insurance covers you for damages you may cause to someone else’s vehicle, accidental death or injuries of third parties involved in the same accident, and attempted theft, theft or hijacking of your vehicle. It also covers damages to your vehicle caused by fire, lightning or explosions.
  3. Third Party Only Insurance
    4. Third Party Only Insurance is the cheapest type of insurance, but only covers damage you may cause to someone else’s vehicle, as well as the accidental death or injuries of third parties involved in the same accident. Third Party Only Insurance does not cover the loss or damages of your own vehicle.

What is the difference between the market and retail value of my car?

  • Market Value:
    • Market Value refers to the average between the likely trade and retail values of the vehicle and is usually lower than the retail value.
  • Retail Value:
    • The Retail Value of a vehicle refers to the likely selling price of the vehicle by a motor dealer to a purchaser. It’s also known as the closest value to the replacement value of your vehicle.

What are the main factors that influence my insurance premium?

  • Your vehicle, such as the make, model, engine size, police records, the likeliness of your car being stolen, etc.
  • Your individual risk profile.

What is excess?

Excess is a specified amount you have to pay when you submit a claim. This will be specified when you sign up for vehicle insurance at a specific insurer.Please note that each insurer has their own Terms and Conditions when it comes to the excess you will be liable for in the event of a claim.