In South Africa, drivers have a choice of whether to insure their vehicles or not. If you're considering whether or not you need car insurance, it is best to begin with a discussion of what it is and what it does.

In its basic form, car insurance provides protection against financial losses incurred as a result of an accident, theft or damage to your vehicle. You and the insurer both have certain rights and obligations in the event of an accident, and these are spelled out in your contract, or policy.

In general, car insurance takes three forms.

The minimum level of insurance is called Third Party or liability cover. This type covers your liabilities with respect to third parties such as people other than yourself who are injured in an accident, or other people's property damaged in an accident deemed your fault.

The second is Third Party, Fire and Theft and covers the situations mentioned above and adds cover for theft and damage to your vehicle caused by theft and fire.

Comprehensive Car Insurance adds to the above with cover for accidental damage to your vehicle, vandalism, personal accident, limited medical expenses, damage or loss of personal property carried in your vehicle, and replacement of your vehicle in the first year.

Although auto cover is optional in South Africa, purchasing this cover is the sign of a responsible driver. South Africa is known to have the highest incidence of auto accidents and fatalities. Every time you get behind the wheel, you take the risk of damage to your car, to yourself and to other's property in your own hands. Hijackings and thefts take place everyday, in some areas at an alarming rate. The simple fact is, unless you can afford to pay, out of your own pocket, to repair or replace damaged property, medical expenses resulting from an accident, or property damage caused by theft or fire, you should have car insurance.

Now, with a basic knowledge of insurance and its coverage types, it is time to begin shopping. You may suffer sticker shock, as premiums can be high for new drivers. Use the following suggestions to help bring your premiums down.

Research several companies, their cover and their premiums. It is possible to see a substantial savings on your premiums just by comparing the companies against each other - even for young drivers. It is easiest to get information and quotes online. If you decide to buy your policy online, you may receive a discount for that as well.

Consider your insurance premium as you shop for your car. High performance and expensive car models are more expensive to insure because of the increased risk and higher repair or replacement costs.

Another option is to pay a higher excess or deductible. This represents your portion of the financial responsibility when you have a claim. Insurers have minimum excess amounts, but if you volunteer a higher amount, you may save on your premiums.

Also, consider paying your premium at once rather than quarterly or monthly. Most car insurance companies charge interest, some up to 30%, when you pay in installments.