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Buying a new car is a difficult decision- the reason for its tough nature, is that a car is your second largest asset (the largest being your home). The key to buying a vehicle is finding the right fit for your situation. If you need to carry heavy loads or use the vehicle for family transport, then a sports car is not the right choice. Once you have found the car that is appropriate for your needs, then you need to purchase insurance.

Vehicle insurance (AKA car insurance or auto insurance) is insurance that you purchase for your vehicle in the event of a traffic collision. This insurance covers vehicle damage and bodily injuries resulting from the accident.  Furthermore, vehicle insurance covers theft of the car or damage caused in the event of a break in.

There are numerous benefits to taking out vehicle insurance on a new car. Below is a list of five advantages of car insurance:

Benefit Number One – Cracked or Broken Windows

One of the easiest things to happen to a vehicle, driving behind a truck and it shoots up a stone cracking your windscreen. By law you are not allowed to drive with a crack in your window if it is on the driver’s side of window and cracks will cause leaks during the rainy season. Having vehicle insurance allows you the opportunity to phone your insurance broker and arrange repairs to be done at no cost to yourself.

Benefit Number Two – Towing and Rental Fees

Vehicle insurance covers breakdowns or traffic collisions. The insurance company will organise your vehicle be towed in for repairs and a rental car in the interim, without additional expenditure on your part.

Benefit Number Three – Losing Your Keys

Often we lose our car keys and end up in a flat panic. Your vehicle insurance company will send out a company representative and a locksmith to have a new car key made for you.

Benefit Number Four – Legal Fees

In the event of a hit-and-run accident and you do not have medical insurance; your vehicle insurance will cover medical costs. These costs cover medical doctor’s bills, funeral costs, rehabilitation and losses caused by the hit-and-run driver.

Benefit Number Five – Theft or Break-in

If your vehicle is stolen or broken into, vehicle insurance will cover the costs in replacing the car or items stolen. The insurance company will pay book value for the items.

One can obtain vehicle insurance from banks and financial institution. There are three factors that influence your vehicle insurance premiums: your age, the car value and the security system in place.

Number One – vehicle insurance will decrease the older you are, as you become a more experienced driver.

Number Two – the insurance premium depends on the cars value. The higher the car value, the higher your premium payments are. The reason is that the insurance will pay a higher cost for replacing a Ferrari that a Uno.

Number Three- The higher the protection of the vehicle, the lower your repayment. If the vehicle is fitted with an alarm, immobiliser or gear lock and is parked in a secure spot overnight, your premiums are automatically lower.

I am Greg Jones – home owner, car lover, adventure junky and food fundi. Taking out vehicle insurance for a new car may increase the cost of your vehicle, but it is well worth it. Statistically three hundred vehicles are stolen daily in South Africa. We are constantly in need of a vehicle to travel. Instead of taking a gamble and needing instant loans in the event of a theft, purchase vehicle insurance and protect your asset.