Comprehensive Liability Insurance Questions?

By Graham McKenzie

In our lives, insurance plays a very important part. If we did not have insurance, we would constantly be worried if things happened. In fact, things do happen and there really is nothing we can do about it. Because of this, insurance was born. In general, insurance provides us the security we need that keeps us on track and covered. Without it, we would all be in a heap of trouble financially.

We have all used or will use our insurance at some point in our lives. Most of the time we do not need the insurance and we complain about the premium that goes along with it. It isn?t until you actually make a claim that you were glad you had it. Other than that, we find it useless and just another bill; but we still keep it around.

When you get insurance, the most basic form is liability insurance. This is the insurance that covers the base of things when you get into an accident. The fact is, in an accident, there is going to be someone liable for it. This person that is deemed liable will be responsible for all damages: mental, physical and structural. This is a financial disaster waiting to happen.

Liability Insurance is also called Third Party Cover. If you are deemed at fault for the accident, you will be able to avoid bankruptcy with liability insurance. You do not want to be stuck in court because you did not have insurance coverage. This would usually involve the person who was not at fault trying to get all the money they can out of you and then some more in court costs. This is their legal right. This process is long and drawn out often times taking years to come to a resolution. The resolution is usually you being wiped out of everything.

Insurance makes you feel safe in the event of an accident. It ensures that you will be alright financially if you find yourself in one. In general, the premiums you pay are all associated with risk. This is why premiums go up after you have been in an accident; it means you are more of a risk. In the event of an accident, your insurance company handles all the payments and all of the court problems and negotiations. You will, however, be responsible for the excess. An excess is the part you will pay before your insurance company will do this for you. This amount was determined when you signed your policy and is communicated every time your policy is up for renewal. Excess runs from a couple hundred dollars all the way up to thousands.

Consider other insurance options when you choose liability insurance. You want to make sure that in the event you have an accident, you will be fully covered for damages and more. Most people wait until it is too late; do not be that person. Ask your insurance agent today for more information that would best suit your needs. - 23211

About the Author:

Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading Car Insurance portal, which provides cover for all Car Insurance types.