Car Insurance for Less than 100 Rand a Month
November 7, 2016
Car Insurance for less than 100 Rand a month? Well, you get what you pay for with motor insurance.
For those with tight budgets, any talk of a deal is exciting. Read the small print in this case, as what the dealer tells you may differ from what the contract states.
Less than R100 motor insurance may be an instance of ‘too good to be true’.
Car Insurance for Less than 100 Rand a Month – You’ll be Lucky
Motor insurance policies range from R300 to R400 monthly. Finding R100 to R200 policies may be possible. However, R100 monthly for comprehensive insurance would be a step too far.
Comprehensive Motor Cover protects your car from damages as a result of an accident. Theft insurance covers most of the vehicle’s value. Included are extras such as car hire, public indemnity and personal liability.
In South Africa, it would be impossible to find Comprehensive car cover for R100.
Car Insurance for Less than 100 Rand a Month invites Insurance Scam
Your risk profile may be low, or your car may be cheap and old.
The simple fact is an R100 a month car insurance policy could be a scam, as it would be tough to find comprehensive cover at that price.
Dent and scratch cover sometimes gets marketed as vehicle cover. Insurers offering bargain basement prices do exist.
Some even offer monthly premiums of less than R100. This may be in fact Third Party Only Cover, and not a comprehensive policy.
If you Are a first-time Buyer – Beware
Students may not be aware of the different cover types. Comprehensive Vehicle Cover insures against virtually any event and considered the best.
Third-Party Fire and Theft – Cover for damage to the third party’s car. Cover for your car includes loss, i.e. write off, fire, hijacking and theft but not accident damage repairs.
Even this ‘half cover’ for R100 a month is highly unlikely in today’s South Africa.
At the bottom of the car insurance range, Third Party Only Cover offers protection to a third party’s car if the fault lies with you. You pay for your damages.
The search for your money’s worth when it comes to car insurance is never ending. Most students cannot afford to spend too much on their car insurance, which is why they settle for less cover.
Car Insurance for Less than 100 Rand a Month and the Pitfalls
At times, cheaper cover means inferior cover. Sometimes promises are made by insurers about their products costing less than R100 a month.
However, claim payment hesitance, unnecessary delays and excesses, penalties and deductions not previously discussed are some of the pitfalls faced.
At the end of the day, some cover is better than the absence of cover. It is prudent for students to acknowledge how much cover they actually get at which price point.
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All info was correct at time of publishing