In Zambia, car insurance is legally compulsory. It is a requirement when a vehicle is being licensed. All types and models of vehicles are supposed to have an insurance cover.
Insurance caters for losses incurred through car damage, accidents, injuries theft among others. The government requires all vehicles to have an insurance cover disk usually placed on the windscreen showing that the car is insured. Failure to ensure your vehicle will attract a fine and possibly a jail term.
There are various types of insurance covers. Comprehensive car insurance ensures that one is compensated for loses caused by your car to other cars or properties if legally liable for the damage. This type of insurance also pays the liability for other people’s bodily harm or death caused by your vehicle. Damages on your car resulting from accidents, riots, strikes, and fire are also compensated under comprehensive car insurance. Comprehensive insurance cover is the most advantageous choice of insurance for a car owner. This is because it covers most of the possible liabilities suffered by the car owner. However, this insurance does not cover mechanical breakdown, wear & tear, loss of use, consequential loss and third-party injuries and damages.
Full third party insurance cover compensates your liabilities resulting from damages caused by your car to other people, like injuries\death and other people’s property. However, it does not cover costs to your car resulting from fire, strikes, and riots. It also excludes mechanical breakdown, wear & tear, loss of use, consequential loss and third-party injuries and damages. Full third party insurance cover is the cheapest among the covers. Its disadvantage is that it does not cover your injuries and property damages suffered.
Full third party fire and theft insurance covers your legal liability resulting from damages made by your car to other people like injury & death and other people’s properties. It also includes damages to your car resulting from fire and theft. This cover is quite economical as one enjoys fewer costs of part of the benefits of the comprehensive insurance cover.
Payment of vehicle insurance (premiums) has various options. Most insurance service providers have covers packaged in a way that premiums are affordable for motorists. One can be flexible in paying dividends or opt to pay them in quarters, half year or annually. Car owners are however advised to pay dividends annually as forgetting has serious consequences.
Various factors determine the cost of insurance coverage. Such include vehicle model, engine capacity, driving experience and age of the owner. Other personal details of the owner are also considered for example health. Safety is paramount for every car owner. One should always ensure that his/her car is legally insured and observe safety measures while using roads.
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