Compulsory vs. Third Party Insurance
You're son or daughter just turned the age of the legal driving limit. It's an exciting day for them, but not so exciting for the parents. You know about all the dangers of driving a motor vehicle at a high rate of speed. You're concerned and you should be, but you are not the only one. So is the insurance company providing coverage for your son or daughter.
When taking out car insurance for the first time, the client must decide on a rate. Usually a parent will make the decision for their children. Compulsory insurance is a good place to start. It's required in most countries and forces you to pay a fairly high premium each year. It covers damages for other vehicles in the event of an accident.
Compulsory insurance does not cover repairs or instances where the vehicle is stolen. Third part insurance does, and most people opt to cover those privileges. Third party insurance is not compulsory and solely taken out on the owner's discretion.
Unlike compulsory insurance which is calculated according to the age and experience of the driver, third party insurance calculates the value of the car. Insurance companies will break down the age of the vehicle, its current condition, and where the vehicle will be garaged.
If the parent wants to further their children's insurance coverage than signing up for third party insurance is a terrific idea. Chances are your son or daughter will make a few mistakes when they first start out driving alone. Hopefully these mistakes will not result in harm to your children or others. Third party insurance covers accidents involving the sole car of the driver.
The higher the value of the vehicle, the more your monthly insurance premium will cost. It's always a great idea to have comprehensive car insurance, but especially important for rare vehicles or vehicles in mint condition.
Comprehensive insurance is very popular and another good coverage. It covers accidents as well as theft, making the vehicle protected under minor to major car thefts. The insurance is calculated based on the value and condition of the vehicle as well as the driver's age and where it's parked.
When taking out car insurance for the first time, the client must decide on a rate. Usually a parent will make the decision for their children. Compulsory insurance is a good place to start. It's required in most countries and forces you to pay a fairly high premium each year. It covers damages for other vehicles in the event of an accident.
Compulsory insurance does not cover repairs or instances where the vehicle is stolen. Third part insurance does, and most people opt to cover those privileges. Third party insurance is not compulsory and solely taken out on the owner's discretion.
Unlike compulsory insurance which is calculated according to the age and experience of the driver, third party insurance calculates the value of the car. Insurance companies will break down the age of the vehicle, its current condition, and where the vehicle will be garaged.
If the parent wants to further their children's insurance coverage than signing up for third party insurance is a terrific idea. Chances are your son or daughter will make a few mistakes when they first start out driving alone. Hopefully these mistakes will not result in harm to your children or others. Third party insurance covers accidents involving the sole car of the driver.
The higher the value of the vehicle, the more your monthly insurance premium will cost. It's always a great idea to have comprehensive car insurance, but especially important for rare vehicles or vehicles in mint condition.
Comprehensive insurance is very popular and another good coverage. It covers accidents as well as theft, making the vehicle protected under minor to major car thefts. The insurance is calculated based on the value and condition of the vehicle as well as the driver's age and where it's parked.
About the Author:
Graham McKenzie is the content Syndication Manager at Insurance123.co.za South Africans leading car insurance information portal
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