Car Insurance Made Simple
September 4, 2016
Your car is your most valuable and expensive asset after your house. So having reliable short term insurance will give you financial cover, as well as peace of mind. All that’s left to answer is: what type of simple car insurance is right for you?
Simple Car Insurance
There are three types of simple car insurance available in South Africa:
Comprehensive Car Insurance
This kind of insurance offers the most extensive cover and includes theft, hijacking and loss. The Comprehensive cover also insures against damage caused by accidents, fire, hail and floods. Comprehensive insurance covers against third party claims if you caused the damage. Because of the extensive cover, this insurance is the most expensive coverage for vehicles.
Third Party, Fire and Theft insurance
The main difference between the above and Comprehensive is it does not cover accidental damage to your vehicle. Car loss due to theft, hijacking or fire is covered, as well as costs to cover damage you caused to the third party’s vehicle. The policy does not cover vehicle accidents caused by yourself, meaning you would have to cover the repair or replacement costs yourself.
Third party only cover
Third party is the cheapest of the three options, and it provides cover for the damage you caused to another vehicle (third party). This kind of cover includes cost coverage for accidental death or injury of third parties involved in the accident. The third party option does not cover loss or damage to your vehicle in accidents, fire or theft.
Option two and three are the best simple car insurance options to choose if nothing is owing on your vehicle or it has a low value. Or perhaps you want financial protection against involvement in an accident to a third party involved, especially if the party involved has a very expensive car.
Your premium will be significantly lower if you don’t go with the Comprehensive cover. However, you will have to cover the costs for any damage or write-offs if your vehicle is in an accident. So weigh up your options. Either pay a high premium or face a devastating financial situation in the wake of an accident.
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All info was correct at time of publishing