Read the fine print to ensure you stay within the policy rules
A vehicle accident for which you're not insured can be financially crippling. Photo / Thinkstock
A vehicle accident for which you’re not insured can be financially crippling. 

Most of us have car insurance. It’s a necessary evil.

Hit the roads without it and you could be saddled with a bill for thousands of dollars for wiping out even a modest car. Or do something stupid on a level crossing and you might be liable for the cost of replacing one of Transport’s flash new electric trains.

The concept of car insurance is quite simple. You pay an annual premium and in return if you suffer a financial loss as a result of an unforeseen event such as theft or an accident, the insurance company pays to put it right. Usually that’s by way of repair. But if the car is “written off”, that is, more expensive to repair than replace, or stolen, then you will be paid out the current value of the vehicle.