Car Insurance 101 for South Africans

A car is the most valuable and expensive asset after a house and having reliable. Here is a sort of Car Insurance 101 lecture including all you need to know.

Having short term insurance will provide financial cover, as well as peace of mind. All that remains is: what type of car insurance is the right choice for each?

Three types of car insurance are available in South Africa:

  1. Car Insurance 101 – Comprehensive Car Insurance

This kind of insurance offers the most extensive cover. Cover includes theft, hijacking, loss or damage caused by accidents, fire, hail and floods.

Comprehensive insurance also covers against third-party claims if the insured caused the damage. Because of the comprehensive cover, this insurance is the most expensive coverage for vehicles.

  1. Car Insurance 101 -Third Party, Fire and Theft insurance

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The difference between third party fire and theft insurance and Comprehensive is that it does not cover accidental damage to a vehicle.

This insurance covers car loss due to theft, hijacking or fire. It also covers repairs to damage caused to a third party’s vehicle.

The insurance does not cover car accidents caused directly by the client. That means the car owner will have to cover the repair or replacement costs themselves.

  1. Car Insurance 101 -Third party only cover

Third party only is the cheapest of the three options, and it provides insurance for damage caused to another vehicle (third party), as well as cost coverage for accidental death or injury of third parties involved in the accident. This option does not cover loss or damage to your vehicle in accidents, fire or theft.

Option two and three are the best options to choose from if a vehicle is paid off, of low value or needs financial protection against damages caused in an accident to a third party involved, especially when a party involved has a very expensive car.

Premiums will be significantly lower if you do not choose the Comprehensive cover, but individuals will have to cover the costs for any damage or write-offs if the vehicle is in an accident. It is important to weigh up the options to either pay a high premium versus a devastating financial situation in the wake of an accident.

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All info was correct at time of publishing October 21, 2018