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How do you know which car insurance you need? Is it a matter of the cars age, or your driving ability? Are you not sure as to your vehicles history? By asking yourself just a few short questions, you will be able to pick comprehensive, or limited liability.
As far as those two policies are considered, sometimes the choice has been made for you. If you received an auto loan, read through the contract, because often times they state which policy is best. At that point, you just have to decide what extras you need or want.
Is your vehicle old or new? With older vehicles, limited liability is the way to go. If you lose it for any reason, you are out much less than with a newer vehicle. After all, why pay over a hundred a month if you only paid 900 for the vehicle?
Perhaps you are not sure if your vehicle is considered old or new. I mean, if you are used to taking care of things for a long period of time, this is may be the case. If this is you, go to your DMV and look at your driving record. Do you have any accidents or tickets in the last five years? If so, you may need liability, because the rates on drivers with bad records tend to skyrocket.
Regardless of the coverage, another factor you will need to consider is your location. Areas of high crime or accident rates will have a higher premium or rate. In the case of accidents, even though it does cost more, you may need to consider comprehensive more than liability because it covers vehicle damage on both ends. In the case of crime, it really depends. If there is a high vehicle theft rate, both types of coverage will help; if it is vandalism, liability may not cover it.
What is your weekly income? Now, multiply by four for your monthly. Rent? Utilities? Food and gas? The income you bring home plays a huge factor on the coverage you should purchase, as well as the extras if there are any.
Speaking of your checkbook, you should always keep that in mind when making your coverage decisions. If you only make 1200 dollars a month, can you afford to take out 150 for insurance after rent, utilities, food, and gas? The money you make is equally as important as the age of your vehicle, and if you find you cannot afford good coverage on a new vehicle, then you should probably trade in for an older one with coverage you can actually afford.
Obviously many factors will affect which car insurance coverage you will choose. Whether it is the rates, the company history, your driving record, or even your location anything can be considered a factor. If you are still stuck, or have any other questions, the people at carinsurancesa.co.za are highly knowledgeable in the field and will be able to assist you in your decision: liability, or comprehensive. |
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By :
Julio Hervey 
About the Author :
How do you exactly know which car insurance you need? How do I Compare Car Insurance prices? Is it a matter of the cars age, or your driving record? By asking yourself just a couple short questions, you'll be able to pick comprehensive, or limited liability.
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