Car Insurance

1. When your premiums are not paid up to date

2. cover only applies if the vehicle is being driven by someone who holds a current drivers licence

3. the policy will normally not apply if the driver’s blood alcohol level is in excess of that permitted by law

4. If you carry more passengers, than the specified number of passengers it is designed to carry

What kind of policy do you have ?

* Full cover

* Third party fire and theft

* Third party only

Lets look at the different conditions where these may be effective

Full cover Car Insurance

This is generally known as a comprehensive motor vehicle policy. Your car is rated/valued at the time of insuring the car depended on the make, model, age of the car, capacity, use ( whether it is commercial or private) and the nominated driver. Statistics show younger drivers can potentially have more accidents than a more experienced driver, and can be charged a higher premium for the privilege of having the car covered by insurance. Larger excesses may be put on a younger driver, which they will need to pay if they make a claim. Generally the insurer will pay the costs of repairs to your car in the event of damage, excluding any excess.

If you have an accident free year, at renewal time you are rewarded with a small discount off the original premium called a “no-claims bonus”. This can accumulate and be a valuable discount for good driving over several years, accumulating to as much as 60% of the new premium.

Should you have a claim, the vehicle damage is valued by specific assessors, and compared with the market price for that type of vehicle with similar mileage. If the damage is too great the Insurer may choose to “write the car off” and pay you the market value (indemnity policy). The car is then disposed of by the insurer, frequently by auction. It is important to review the insured value of your car each year, so you are adequately covered, while being relevant to current market price. At time of purchasing your insurance you can negotiate for an Agreed Value Policy, which will give you certainty of the amount of a claim, if your car is written. You will not be affected by the market value at the time of the event.

Third Party Fire and Theft

Third party insurance is cover against damages to the other persons vehicle or property, as well as bodily injury, resulting from your use of a motor vehicle. Plus, should your car be involved in a fire or theft, the policy would cover the damage to a certain value at the time of the event. Your car will not be covered if you have an accident.

Third Party Insurance only

Third party insurance is cover against damage to the other persons vehicle or property, as well as bodily injury, resulting from your use of a motor vehicle. In some jurisdictions this type of cover may be compulsory, or incorporated as part of the registration of the vehicle.

This type of cover will not pay for any costs to your own car if it gets damaged. This is a cheaper insurance, but ask your self these questions when making the decision. – Is having a car a necessity ?

Can you afford to replace your car out of your own money ?

What will you do if you cannot drive your car it is damaged in an accident and it is not insured ?

The right type of car insurance, can give you protection for your own vehicle, and damage you cause to other vehicles, property and people. With out this cover it could financially upset your future plans.

If you are looking for savings you can make on your car insurance, check out the article 5 Tips to Save Money on Car Insurance

Boat and Trailer Insurance

Is assessed on the type, size, power and use of the boat or trailer. This is also a yearly renewable cover where the value is assessed at each renewal time. The insurer can alter or reduce the standard of cover by giving notice to the insured before he accepts the policy or renewal.

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