What is 3rd Party Insurance and Why Do I Need It?
October 4, 2018
It is strange that in South Africa where there are so many unlicensed drivers on the road and with a massive road accident statistics record that 3rd party insurance isn’t compulsory.
One reason could be that if they made it compulsory there would be nationwide strikes and vandalism.
3rd party insurance is compulsory in most other countries where the accident rate is far lower but not in South Africa.
If you Don’t Protect Yourself from a 3rd Party You Could face Financial Ruin
When you read up on what 3rd Party Insurance is, the basic definition says that –
“the insured, who is known as the first party, buys insurance from an insurance company, known as the 2nd party, for financial protection against the claims of another party, known as the 3rd party.”
It just takes one accident for your life and your finances to be totally wrecked! The worst part is when you’ve damaged somebody else’s car, more so when its the latest Merc or even a Ferrari and you have to find thousands upon thousands of rands to fix it. You’re looking at total bankruptcy and poverty for the rest of your life!
3rd party insurance doesn’t cover your loss in an accident, so any damage to your car isn’t covered.
If you have to pay out to repair your own car, how on earth will you ever find the cash to pay for someone else’s car? With 3rd party insurance you are at least covered against damage you may cause to another car, and THAT is a lot better than having nothing.
Tights Budgets Still Allow for 3rd Party Insurance
In South Africa, as a car owner, you’ll have different kinds of car insurance cover made available to you such as Comprehensive car insurance, Fire and Theft insurance or Third Party Only insurance. Everybody would like Comprehensive car insurance which also covers you for claims by 3rd parties where you were the one responsible for damage to their vehicle.
If you have a tight budget, then you’ll have to resort to 3rd party insurance. Drivers of dilapidated cars which aren’t worth much opt for 3rd party insurance.
Even though South African roads are known as death traps, most drivers on the roads are not insured, not even with third party car insurance.
Third party doesn’t insure your own car against damages after an accident, it covers loss or damage to any third party involving their property or any bodily injuries, as a result of the driver’s negligence. And third party insurance is really cheap – less than R100 a month in most cases.
3rd Party Insurance Should be Compulsory
Third party insurance is the most basic car insurance you can get and covers third party liability only. It is certainly the most economical insurance coverage there is and a popular option for people on a tight budget.
The way it works is that if you cause a accident, third party insurance will only cover the damages to the 3rd party involved in the car accident that you have caused, but is the initial step to getting your car and yourself insured.
Third party insurance covers loss of life as well as property damage as a result of the car accident.
There Are Companies Lobbying to Get Third Party Made compulsory
The South African Insurance Association (SAIA) has been trying to introduce compulsory third-party motor insurance for some time claiming that if everyone is insured road safety will be improved.
It will certainly be a strong step towards improving road safety, but in South Africa there seems to be a stronger force preventing this from happening.
Next step: Request your car insurance quote. Simply complete and send the form on this page
All info was correct at time of publishing