10 Things You Need to Know About Car Insurance in South Africa
June 18, 2018
When you think of car insurance in South Africa you always tend to focus on the cost alone. Here are 10 other things you need to know.
There are three types of car insurances in South Africa.
Comprehensive insurance covers every aspect of car insurance, from fire to theft and accidents. It also includes third party cover should you be liable for another person’s costs.
Third party, fire and theft. This cover is similar to comprehensive cover but does not include accidental damage to your car.
Third party only. This is the cheapest form of car insurance in South Africa. It only covers damage you might cause to another person’s car.
- Car insurance according to the use.
Car insurance is based on the use of the car. There are three types of registration; these include private, professional and business use. Private use refers to your personal car. Professional means you use your car for work, but do not need it to be able to do your work like a doctor for instance. Business use is for cars one uses for running and maintain a business like a delivery truck.
- Car insurance quotes have specific inclusions and exclusions.
The quote will tell you what the policy covers and what not. Study it carefully to ensure that you get the best cover.
Laws regulate car insurance companies in South Africa.
Car insurance in South Africa is regulated by law by two bodies. They are called FSB and FICA. Any company that is not registered to these bodies should be avoided.
- You may need to specify or nominate drivers.
If your friend drives your car and causes an accident, some companies may reject the claim if the driver was not nominated on the policy.
- Some companies give additional benefits.
Insurance companies like Auto and General offers additional benefits as part of their product. Other companies likeKing Price insurance cuts out the benefits to provide you with the cheapest car insurance in South Africa.
Cheap car insurance in South Africa might turn out to be expensive.
Some of the cheaper car insurance in South Africa may not be the best choice. They often have lots more rules and will refuse claims more easily or create higher co-payments
- Accidents and claims may increase your premiums.
Some companies increases their premiums yearly, but please note that your premiums could increase after a claim. Claiming means that you have an increased risk factor.
- You need to adjust the value of your car every year.
Your car loses its value every year to ensure that you are not over insured it is wise to adjust your policy every year to lowered value. Car insurance in South Africa sometimes pays less for a claim if the car is over insured.
10. The best car insurance in South Africa is often not online cheap car insurance.
The best insurance is not always the cheapest. Rather insure that you have full cover and lower co-payments than cheap cover and high co-payments.
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All info was correct at time of publishing