What is car insurance?
Car insurance should be seen as a financial safety net. You pay a premium to ensure that you have financial coverage for your car in case it’s damaged or stolen. So it is recommended to update your insurance from time to time to ensure your vehicle is matched with the most cost effective insurance policy.
What can be protected?
Car insurance policies range in price and cover. They will protect you from incidents such as theft or damage to your car or injuries to yourself in the event of a car accident.
What to consider when choosing your insurance?
Car insurance prices differ from circumstance to circumstance, and there are many factors to consider when choosing the ideal car insurance to suit your needs. (1) Age of your car: The model and year of your car are very important to an insurer. If you own your car outright you may not want or need comprehensive cover. (2) The age of your car will also determine the insurance premium. An old car (as long as it isn’t a collector’s item) will likely have a cheaper insurance premium than a new car.
What is an insurance premium?
A premium is the amount you pay per month to your chosen insurance company. Paid yearly or monthly.
What is a deductible?
In the event of a claim you will be paid out by your insurer. However certain amounts will be required to be paid by you. The sum of money paid by yourself is called the deductible. Insurance with high premiums often have lower deductibles than insurance with lower premiums.