Yikes!: My Son Or Daughter Is Now Driving
While many people consider car insurance a pain, the fact of the matter is it’s necessary and important to have in the event of an accident or theft situation. Do you understand the difference between compulsory car insurance and third party insurance?
If not, it’s important to start there especially if you are looking to take out a new car insurance policy for a young driver. Compulsory insurance covers the vehicle and other vehicles involved in an accident. It will help support the damages or injuries sustained in an accident to the other vehicles and individuals involved.
Compulsory car insurance does not cover repairs for your vehicle. Third party insurance does and is necessary. A lot of people feel they can bypass this expense, but car repairs are very pricey and will break the bank quickly. Third party insurance also covers the owner of a vehicle that is stolen.
Compulsory insurance is calculated based on age and experience of the driver, while third party insurance is calculated based on the value of the car. Factors that drive the value of the vehicle include the age, condition, and protection (where the vehicle is parked).
Most car owners are sensible enough to take out third party car insurance including coverage against theft. Although your vehicle may not be worth much, the coverage still protects you in case it is stolen.
The higher your vehicle is worth is directly related to the premium. Obviously you will run into higher premiums if your vehicle is brand new or valuable based on age or rarity.
Owning a vehicle, especially your first, is a very important and crucial process in the development of a young man or woman in driving cars. It signifies independence and added responsibility. Play the game smart and you will save a lot on your car insurance policy.
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