Choosing The Correct Insurance Value For Your Car |
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Choosing the correct insurance policy to suit your needs is the first step in insuring your car, but the next is to ensure that it is insured for the correct value. Fabian Angiers , General Manager of Dial Direct Insurance, says, ? It is important for motorists to insure their cars for the amount that adequately reflects its market value. This is important if motorists are not to suffer financial loss if their cars are not adequately insured. Many car owners don't understand that there are three different amounts for which a car can be insured ? market, retail or trade. However, there are pros and cons to each and it is essential to understand what they are.? For new cars, determining the amount to insure is usually based on the purchase value or retail value. However, because cars start depreciating in value from the moment they are driven off the show-room floor, it is not wise to simply leave it at that on an ongoing basis. The trade price is approximately R10 000 less than retail and is a sensible option for most cases, taking the depreciation into account. For a used car, market value which is the average of the car's trade and retail values is often the best bet and this can be determined by looking up current prices for similar models in one of the car magazines. Angiers says that choosing market value can be the wrong decision if you do high mileage, as you are then unlikely to get paid out for the market-related value of the car, due to the effect of higher mileage. Angiers concludes, ?Motorists must, at all costs, avoid insuring their car below the actual value in an effort to save on insurance premiums. If you do have to make a claim, you could then find yourself significantly short on the amount that your insurance pays out compared to the actual amount it will cost to replace or repair your car.? Related Insurance Articles: * Its Your Choice When It Comes To Choosing An Insurance Company * Caring For Your Car In A South African Winter * Safe As Houses With Dial Direct * Dial Direct Explains Premiums * Dial Direct None Payment Questions Answered * Dial Directs Advises On Insurance Pitfalls To Avoid * Dial Directs Bucks Back Bonus 
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| 3/14/2010 7:06:03 AM | |||||||||||||||||||||
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