Money Matters

Car Insurance for Students: Is it Really Necessary?

By April 3, 2017 No Comments

Cool, man! So you managed to scrape together enough cash to get yourself an awesome ride to call your very own. Congrats! Now while you enjoy cruising around Braamies with your mates, you might want to start thinking about the next step. Student car insurance… do you? Or don’t you? We investigate below.

Go for it!

Yes, monthly car insurance premiums can cost a huge chunk of change. However, being involved in an accident (even if it wasn’t your fault) can cost you SO much more! At the end of the day, it’s definitely better to be safe than sorry. In short, bite the bullet and sign that policy!

Types of Car Insurance Available to You

While prices will vary from provider to provider, there are generally three main types of car insurance available, namely comprehensive vehicle insurance, third party, fire and theft insurance, and third party only insurance. Let’s take a look at these options in more detail so that you can make an informed decision going forward.

Comprehensive Vehicle Insurance

If you want total peace of mind when it comes to your shiny new toy, comprehensive insurance is the way to go. You’ll be pretty much covered from all angles… however, the cost for this type of insurance can be exorbitant to say the least. Let’s face it, unless mom and dad are extremely generous, comprehensive insurance isn’t going to be an option for most students out there.

Third Party, Fire and Theft Insurance

What is important to note with this option (as well as third party only insurance) is the fact that the insurance provider does not cover your vehicle for any damage if you are involved in an accident. It covers the damage incurred by any other vehicles involved so that you don’t have to pay for it out of your own pocket.

However, it does cover you for damage to your vehicle if the damage is caused by fire, and if your car is stolen, or parts of it are stolen, the insurance provider will also pay out an agreed-upon amount.

Third Party Only Insurance

This is the ultimate in student shoestring car insurance options. It is a lot cheaper, but it only covers you in the event of an accident in which other vehicles are involved (once again, damage to your own car is not covered). Any damage that you cause to another vehicle will be covered… but everything else from fire damage to theft? You’re pretty much on your own.

Remember to do plenty of research on the different insurance providers before making a decision regarding which one to go with. Ask for quotes until you have them coming out of your ears and you’ll be sure to make the best possible insurance choice according to your needs and budget constraints. Be safe out there on those roads, guys!

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