This comes into full effect from February, if approved by the National Treasury. In addition to this, from January 1, 2018, the government will be implementing level six water restrictions.

So what will this drought levy mean for you? We find out…

With everything going up, why don’t you pay LESS for car insurance?

What Is A Drought Levy? 

The City is currently facing a serious problem with the possibility of Day Zero being imminent. Businesses and residents have been rationed to a quota of water per month.

Since the implementation of Level 5 water restrictions, the City’s water consumption has decreased, however not enough.

This has called for the possible implementation of a drought levy. According to Mayoral Committee Member for Finance, Cllr Johan van der Merwe, the City isn’t making enough money. The money that the City normally gets for water usage has declined- this decreasing the City’s income to finance infrastructure.

“This is income we need to fund projects to make additional water available, and to carry out maintenance on our infrastructure. Please remember that the cost of maintaining infrastructure to supply water remains the same no matter how much water is consumed. As such the City is introducing a drought charge to make up the revenue shortfall during these unusual times.”

How Does The Drought Levy Work? 

The levy is currently in the process of being approved, however once the Minister of Finance and Council approves it, it will come into effect from February 1.

The levy is expected to remain in place until 2021 in order to assist the funding of new water projects.

The City is expecting to raise R1 billion per year in funds for their projects through drought levies. Each home owner will be expected to pay a levy each month that is dependent on their property value.

“The drought charge is based on property value and is estimated at about 10% of the current municipal rates portion of residents’ municipal accounts. Residential properties valued under R400 000 and commercial properties valued under R50 000 will be exempt from the charge. All other property owners will be expected to pay the charge,” explains Van Der Merwe.

This levy will be included in the monthly rate accounts of residents and depending on the owner, if the place is rented, the tenant may be required to pay.

How Much Is It?

This table shows the expected maximum charge against the valuation reflected. These are not bands of charges, but indicative examples.

According to Van Der Merwe, the City will keep their financial reports open and available for public scrutiny. This is to ensure that citizens know where their drought levies are going to.

What Does Level 6 Restrictions Entail?

The City has announced that Level 6 water restrictions will be implemented from January 1, 2018. This means that households using more than 10 500 litres per month could face fines. Water restriction metres will also be installed in households that exceed the limit.

Non-residential properties are expected to reduce their water consumption by 45% compared to the corresponding period in 2015. While agricultural users are required to reduce water consumption by 60%.

The City has discouraged residents from using borehole water for outdoor purposes. This ensures that these resources are conserved.

*For more information on Level 6 water restrictions and drought levies, click here.

The post Government Set To Drain More Money For Drought Levies appeared first on Insurance Quotes 24.

We often realise far too late the parameters of our car insurance quotes, which can be a headache of unnecessary expenses.

Reviewing and analysing  car insurance quotes and your policy should be an annual occurrence, even more if your lifestyle changes. Certain lifestyle changes may include buying a house and having to adjust your home insurance (better security can be combined with car insurance) or growing your family (added expenses).

Make sure you’re covered with the right car insurance quote for you? Free Comparison Tool to Compare Insurance Quotes Online: Click Here. 

The importance of an annual review can quickly be realised when assessing the coverage you have taken out, which may need updating.

The 4 Main Types of Car Insurance Quotes:

1. Third Party Car Insurance 

This type of insurance is the most inexpensive as it provides the least amount of coverage. Third Party insurance essentially means that if you bump into another car, your insurance provider will take care of their repair expenses, while you have to pay for your own (without the help of the insurer).

What 3rd Party Car Insurance Quotes Do Not Cover

Third Party insurance does not cover your loss if you have an accident. If the accident was not your fault, you can claim against the other party.

How Is a Car Insurance Claim Determined?

In cases where the blame of the accident is not entirely in the hands of one party, an insurer will apply the principles of Apportionment of Damages (see below) and will pay out accordingly.

Chapter 1 of Contributory Negligence of Apportionment of Damages Act 34 of 1956, reads:

(a) Where any person suffers damage which is caused partly by his own fault and partly by the fault of any other person, a claim in respect of that damage shall not be defeated by reason of the fault of the claimant but the damages recoverable in respect thereof shall be reduced by the court to such extent as the court may deem just and equitable having regard to the degree in which the claimant was at fault in relation to the damage.

(b) Damage shall for the purpose of paragraph (a) be regarded as having been caused by a person’s fault notwithstanding the fact that another person had an opportunity of avoiding the consequences thereof and negligently failed to do so. The apportionment of the damages will indicate the amount of damages payable in relation to the amount of fault rests on each of the two parties.

This, essentially, means if both parties were of contributory negligence to the accident whereby one party had the chance to evade the damage, a portion of the guilt will also fall on their shoulders.

Make sure you are covered with the right car insurance for you? Compare quotes for FREE online here today

2. Road Accident Fund (RAF)

This will cover any personal harm endured by a third party, but not damage to the car (this will be covered by your insurer).

Needing third party insurance? Compare quotes for FREE here today: Click Here. 

3. Third Party, Fire and Theft Insurance 

Now we are getting somewhere. Third Party, Fire and Theft provides cover for the other party (as mentioned above) or if your car is damaged as a direct result of fire, explosion, lightning, attempted theft, or if your car is stolen.

This insurance policy also covers any damages to a third party, or their car, in the event of an accident.

NOTE: The most an insurer will pay out is the value of the car as stated on the schedule.

What 3rd Party Fire & Theft Car Insurance Does Not Cover

• No licence while driving
• Endorsed licence while driving
• Invalid licence while driving
• Driving under the influence of drugs or alcohol
• Reckless driving
• Unroadworthy car
• Unauthorised use of vehicle
• Keys left in and / or on the car
• Leaving the scene of an accident
• Using car for commercial purposes or for racing

When Is It Advisable To Have Third Party Or Third Party, Fire And Theft Insurance?

These types of insurance policies are perfect under the following circumstances:

• You have an older, low-value vehicle, and it is paid off
• You don’t drive the car very often or very far

If you have relatively little use out of your vehicle and it is completely paid off, a Third Party or Third Party, Fire and Theft insurance policy may make sense.

Is third party, fire and theft the way for you? Get the right quote for you here!

4. Comprehensive Car Insurance

The most preferable of all three of the insurance types, especially for car insurance quotes. This insurance policy gives you the best of both worlds. Comprehensive covers everything Third Party, Fire and Theft does as well as your own car repairs and medical damages.

Your car will also be replaced if it is written off in an accident. Emergency accommodation and petrol will also be provided should you break down far from help.

This type of insurance policy may differ from provider to provider in terms of benefits.

What Comprehensive Care Insurance Quotes Do Not Cover

• No licence while driving
• Endorsed licence while driving
• Invalid licence while driving
• Driving under the influence of drugs or alcohol
• Reckless driving
• Unroadworthy car
• Unauthorised use of vehicle
• Keys left in and / or on the car
• Leaving the scene of an accident
• Using car for commercial purposes or for racing

Additional benefits can also be added to your policy. Always ensure your policy provides cover for your sound system, windscreen, canopy, and / or any specific add-on extras.

Make sure you have full comprehensive car insurance! Compare car insurance quotes for FREE online here. 

For a history on car insurance and car insurance quotes, see this Wikipedia article. 

The post 4 Types of Car Insurance Quotes Explained (A Complete Guide for Beginners) appeared first on Insurance Quotes 24.