Auto Insurance in South Africa

If you have had your car for a long period of time, the chances are that you most probably do not have mechanical breakdown insurance for your vehicle. Car repairs are costly and if you do break down somewhere remote, it is not safe, regardless of where you stay.

Insurance companies are realizing that there are many vehicles that could do with the type of comprehensive vehicle insurance motor plan that will cover many problems should they arise, ranging from he cover of items some of which are your engine, gearbox, braking systems, and many other parts, but do take note that the monthly premiums and type of cover depends on the age of our motor vehicle.

New motor vehicles are out of the financial reach of many, as times are tough in general. If it is not the vehicle that is expensive then it is the fuel that has to be put into the vehicle that costs an absolute arm and leg. Take good care of your motor vehicle ensuring that car maintenance is carried out on a regular basis.

Investing in a comprehensive motor plan is a smart way to keep your costs low, as repairs are often very costly for the majority of the population.

If you drive a motor bike, there is special cover and service plans that will take care of your motorbike repairs, too.

Look for a motor plan that includes free roadside assistance, towing costs, accommodation and car hire.

Be prepared for anything; your comprehensive motor plan will give you confidence when driving your not-so- young car. Contact us for further information regarding your motor plan.

Yes;  we all know that car insurance is really expensive, and the truth is that the younger you are and the less money you seem to earn, the more the premiums will cost. Being covered for all case scenarios is imperative, as there will be a day where you will need this really essential cover.

Inexperienced drivers are renowned for causing and being involved in accidents, hence the loading of the young age-group premiums. More important is that the other vehicle involved in the accident will be taken care of. Repairs to motor vehicles are expensive as most of us have discovered the hard way.

There are no excuses not to have any cover at all – why not compare products and quotations from various insurance companies and make intelligent comparisons on what is on offer? This can easily be done from the comfort of your home or office. You need not go from one company to another either as there are sites that will assist in quotes and make comparisons between the main companies.

Don’t leave this and procrastinate until you wake up and find it is one day too late.

Rather contact us for assistance; we are here to assist. So contact us today for the kind of information that will change the way you live your life. It is smart to take care of the little things in life; let this be the start.

Definition of insurance cycle pulled from Wikipedia – http://en.wikipedia.org/wiki/Insurance_cycle

There are many aspects in relation to insurance that you should know if you’re going to be successful when it comes to purchasing and using insurance.

One of the most important aspects of insurance purchasing is the insurance cycle. The insurance cycle is closely related to the stock market and the economy in general, and it is important that you keep an eye on the economic indicators when you’re getting ready to purchase insurance. To put it simply, the insurance cycle is the rise and fall of insurance company’s investments, which in turn raises and lowers their profit.

Many people think that insurance companies profit from taking in more money than they pay out in claims;  this is partially true but a majority of profits that insurance companies reap come from various investments they have in markets.

Insurance companies take the leftover money paid in from premiums and not paid out in claims to invest in the stock market and other types of investments.

This money is known as the float money, and is invested into the economy in hopes of a higher return than simply letting sit around in vaults. As many people know, the economy goes through cycles, known as the business cycle.  There are two phases, expansion and contraction. The insurance cycle follows the business cycle very closely because the stock market tends to rise and fall according to the business cycle.

If an insurance company has the float money tied up in the stock market and the market tanks, the insurance company will have negative profits. The company will then need to raise premiums to cover their losing investments. When the stock market is improving, insurance premiums are lower, and when the stock market is going down insurance premiums are generally higher because insurance companies are losing money.