What is insurance?
Insurance is a way to protect yourself financially when things go wrong. It's an agreement between you and an insurance company. Should something happen to your car or property, your insurance provider will help cover the cost.
In return, you pay a monthly fee called a premium. Think of it as peace of mind, knowing you're covered if life takes an unexpected turn.
Why is insurance so important?
You've heard the saying 'better safe than sorry', and that's exactly what insurance is all about. Accidents, theft, or damage can happen when you least expect it, and having insurance means you're prepared if something goes wrong.
It helps cover your losses, so you're not left with a huge bill or a big headache. It's all about peace of mind, knowing you're protected when life throws you a curveball.
Please note that Terms and Conditions apply
What are the different types of car insurance?
Since Auto Mart has a significant number of cars listed as for sale on our website, let's focus on car insurance here. There are generally four types of insurance to choose from, depending on your needs and the insurer. Each one offers a different level of cover. Some protect you against just the basics, while others give you complete peace of mind. Keep in mind that details can vary from one insurer to another, so it's always a good idea to check directly with them to see what's included.
- 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 car's glass, liability to other parties as a result of an accident, rims/mags, your car's radio, and much more. - 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. - Third Party Only Insurance
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. - Pay-as-You-Drive Insurance
A type of insurance where your premiums are based on how much and how safely you drive. Instead of paying a fixed rate, you're charged according to distance travelled, driving habits, or both. It's an ideal option to consider for occasional drivers.
Auto Mart also lists light commercial vehicles and leisure-related items. Can those be insured as well?
Yes, these items can all be insured and we'd like to encourage you to get in touch with insurance providers to find out how they can assist you with this.
What is listed on Auto Mart that you suggest needs insurance?
The short answer is everything short of spares. The longer answer is cars, bikes, bakkies, light commercial vehicles, and leisure items. These should all be insured.
What is the difference between the market value and retail value of my car?
- Market Value: This is the average value of your car based on what it would likely sell for on the open market. It's somewhere between what the dealer would pay you (trade-in) and what they'd like to sell it for. It's usually a bit lower than the retail value.
- Retail Value: This is what a car dealer would likely sell your car for. It's the closest estimate to what it would cost to replace your car with a similar one in today's market.
What are the main factors that influence my insurance premium?
Your car insurance premium isn't just some random number, it's based on several things that help insurers calculate your risk. Some of the key factors include:
- Your age and driving experience: Younger or less experienced drivers often pay more.
- Where you live: Areas with high crime or accident rates can lead to higher premiums.
- The type of car you drive: Expensive, high-performance, or commonly stolen vehicles usually cost more to insure.
- Your claims history: If you've claimed often in the past, your premium may be higher.
- How you use your car: Cars used for business or long daily commutes may carry more risk.
- Security features: Alarms, trackers, or secure parking can help lower your premium.
- Type of cover chosen: Comprehensive insurance generally costs more than third-party-only options.
What is excess?
Excess is the amount you'll need to pay out of your own pocket when you make an insurance claim. Think of it as your share of the cost before your insurer covers the rest. The exact amount is agreed upon when you take out your policy, and it can vary depending on the insurer and type of cover. Just remember, each insurance company has its own terms and conditions, so always double-check the details when signing up.
*Disclaimer: The information above is meant to be a general guide and certain answers will differ from insurer to insurer.