Motor insurance

Motor vehicle insurance can cover you against accidental loss of, or damage to, your motor vehicle, up to either its:

Market Value - what your vehicle is worth just before the damage occurs.

Agreed Value - where you and your insurance company agree on the value of the car at the beginning of the contract and at each renewal.

Motor vehicle insurance can also cover you against any damage you might cause to someone else's car or property.

The two most important things to remember about motor vehicle insurance are:

• You are only covered up to the limit stated in your policy, and
• Your contract obliges you to take reasonable care to avoid accidents and theft.

There are three types of policy:

Third Party Property Damage

This only covers you against the damage you cause to someone else's vehicle and/or property. It is the least expensive type of car insurance.

Third Party, Fire and Theft

This covers damage caused by fire and theft to your vehicle as well as Third Party Property Damage.

Comprehensive

This covers you against accidental loss of, or damage to, your motor vehicle. It also covers you for any damage to other people's vehicles or property, whether it was your fault or someone else's, and for other costs such as salvaging your care from the accident scene and towing it to a repairer.

As well as the standard policy, companies offer a wide variety of options and benefits. Generally, the more extensive the cover, the more expensive the policy.

When insuring your motor vehicle it is important that you disclose all information that may affect the acceptance of the insurance.

This is regardless of whether or not a specific question is asked.

In addition to disclosing all previous losses and criminal convictions, it is likely your insurer will also want to know who is going to drive your motor vehicle and if you or the other drivers have had any accidents or traffic convictions, and whether your vehicle has been modified.

Some facts that you should disclose about the vehicle when insuring it are available here.

At the time you insure your car you need to take note of how to stay within the terms of the agreement with your insurance company.

An agreement to insure will carry conditions and obligations both for you, the car owner, and for your insurer.

Learn some tips about how to stay within the terms of your agreement here

Insurance companies would not wish to risk their reputations and public safety by settling an uninsured third party claim, without deregistering the third party vehicle if that vehicle has been structurally damaged.

The insurance company is going to insist that before they settle a claim with an uninsured third party, that the structurally damaged vehicle is deregistered.

See a guideline about how the vehicle's structural safety is assessed following an accident, here.

When insuring your car you should read your policy carefully and ask questions of your insurer to clarify your cover and obligations.

Read some frequently asked questions about motor cover here