The latest car sales figures in 2012 have shown that people in South Africa continue to purchase new cars. One essential extra that’s needed when purchasing a new car is insurance. Most of the time people will take out a car loan from the bank and then pay it off monthly, this is typically what most young professionals will do. If you are looking to save on car insurance, all you have to do is fill out the form below and our reputable car insurance partners will call you back, allowing you to do a comprehensive car insurance comparison and save.
The bank will usually insist that the new owner of the vehicle take out insurance, otherwise they will not provide the loan. Technically speaking the vehicle still belongs to the bank if it’s been bought on a loan, and so for the bank’s protection, they need it to be insured before it gets driven out of the showroom. The bank wants to know that it’s money is safe, by giving a person access to a large sum of money, they want to have security that if something goes wrong, they will be reimbursed the money they spent.
Insurance is something that scares away many people because it means an extra monthly expense. Some people choose not to take out insurance for the sake of saving money, but this can be a very costly mistake down the line. A person who takes out a loan from a bank or vehicle finance company won’t usually have a choice about whether or not to have insurance. Usually once the loan is paid bank to the financial provider then insurance will no longer be compulsory as the vehicle will now be property of the new owner, and they can decide whether or not to take out insurance at their own discretion.
