The phrase "vehicle insurance" implies that what you're insuring is your car, but the realities of this kind of insurance are a little more complicated than that.
When you buy a comprehensive vehicle insurance policy, you're protecting your own self from the expenses of damaging your vehicle, but that is just one element that makes up full automobile insurance coverage.
You need insurance which will cover the legal costs which could result during a lawsuit if you take another motorist to court after a crash.
You'll need a plan that can cover the expense of doctor prescribed pain relievers that you may need to buy for yourself if an uninsured driver runs a light and hits your vehicle.
These and hundreds of other possible expenses that have nothing to do with your actual vehicle can be covered by so-called automobile insurance.
The action of buying insurance coverage for your automobile is tantamount to making sure that it is financially safe both for yourself and for anyone else whom you may encounter when you're driving.
It's a little-known truth that you need to safeguard yourself from the potential budgetary hardship of paying for the medical bills of anyone who you injure in an accident, as well as the costs of fixing any public or private possessions which you might damage.
In addition, before you can hit the street you'll need sufficient insurance that you will be able to pay for your own personal medical treatment if you're hurt in a crash caused by an uninsured driver.
To date, none of these important elements of a standard vehicle insurance plan even mention the automobile itself! A good comprehensive scheme will cover at least some percentage of the cost of repair to your automobile after physical damage.
You will probably have an amount to spend until the insurance takes over and the insurance company handles the remainder.
This is called an 'excess' which is normally determined on your behalf by the insurance agent when you sign up for your vehicle insurance coverage but you might have some leeway in setting it yourself.
You may be capable of taking a greater excess that can effectively reduce your monthly payments.
Physical damage coverage, nevertheless, is just one element of a good automobile insurance policy, and lots of people consider it optional rather than necessary.
The actual expense of insuring the physical form of your car is nearly always dwarfed by the costs of the other [sorts of insurance that you require in order to operate a vehicle without risk, sensibly, and lawfully.
Vehicle insurance plans in countries like South Africa usually do not include things like medical payments coverage, which will help you to meet the fees of medical assistance after a crash.
This directs most people to take out medical insurance or to belong to a medical aid fund so that they know they won't end up with a larger than required financial burden if a healthcare facility stay is needed for them, or for an one of their dependents.
Another possibility is the Road Accident Fund that may be claimed from in the event of injury caused by a car accident.
People who hurt themselves where the fault is totally theirs can't claim but folks who are partly or not at all to blame for injuries received can do so.