Do You Lend Your Vehicle to Uninsured Drivers?
Since the concept of insuring a car against road accidents became compulsory as well as common sense, insurance companies have issued policies. History proves that the first policy ever written for car insurance was recorded way back in’95 in the United Kingdom.
Anytime somebody drives your car without a valid license or insurance and they are involved in an accident, the insurance company is not liable to pay for the damages.
Finding insurance coverage has always been a frustrating manner. In the old days, it often involved a long trip from the rural setting to the large city where insurance offices were located. Today it’s much easier to contact insurance companies.
Now the other driver can have insurance, but any lapses or delays in payments results in the same punishment as not having car insurance all together. So next time you hand over the keys and let somebody borrow your car you may be putting more of a risk on your asset than you first thought.
Insurance brokers are business people who earn their profits by commissions from the insurance companies whom they represent. Most brokers are professional trained and extremely well versed in the polices currently available.
Save yourself the hassle by lending your vehicle to just anyone. Only hand over your keys to people you really trust and are close friends or family. Accidents take place everyday, so do you want to run the risk of covering somebody else’s mistake?
Usually they do, and consequently the policy holder forms a close bond with the broker. They continue to do business for the rest of their lives. The policy holder usually passes down the broker to his children and recommends the broker to others.
As I mentioned earlier, brokers are slowly losing their jobs to the digital age or are transferring to doing business online. More people are finding online insurance easier to get and compare. The polices are also usually cheaper, because consumers avoid paying broker fees. Statistics show that people save between ten to fifteen percent of their annual insurance premium by doing business online.
Graham McKenzie is the content Syndication Manager at Insurance123.co.za South Africans leading car insurance information portal
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