3rd Party Only Insurance in South Africa
December 9, 2016
When it comes to insuring your car, full cover is ideal, because it provides the most protection for when things go wrong. Cover yourself with 3rd party only insurance. The problem is that this cover does not come cheap.
You do have alternatives to comprehensive cover in South Africa. You can choose to cover third party, fire, and theft or 3rd party only.
These policies can be a good idea when you have paid your vehicle off if it is not worth too much, and when you seldom drive the car.
3rd party only Insurance
It’s the least expensive route to go and protects you if you damage another car in an accident. If your vehicle is not worth much, the car you hit might be. It can be difficult if you are liable for damages.
Who is This Third Party?
It’s the person who is making a claim against you as a result of damage that you caused.
You are the first party; the insurance company is the second party, and the claimant is the third party.
It’s not always the driver of another car – let’s say, for example, you crash into a store window – but this is most often the case.
What Won’t be Covered?
Your insurer won’t cover you. If you are in an accident, and it injures you, you do have a claim against the other person, but your insurance will not pay out for your repairs.
In instances where neither party is full of blaming, the insurance companies will usually try to figure out who is responsible for what portion of the damages and pay out according to this.
What Kind of Saving Am I Looking at?
The third party only policies are a lot less expensive than comprehensive policies. But many factors will determine how much you will pay – your age, your claim history, driving record, etc. It pays to shop around for different quotes to see which company gives you the best deal.
How Much Cover?
It depend on what kind of policy you have, but it is a good idea to see what excesses apply to your particular plan.
Let’s say, for example; you have an excess of R2000. That means that you will have to pay for the first R2000 of the repairs yourself.
Keeping Premiums to a Minimum
If saving money on your premiums is your primary concern at the moment, there are some things that you can do to reduce your premium.
Start off by looking at the amount of the excess. The higher the excess, the lower your premium is likely to be.
It does bear considering that while this saves you money on a monthly basis, you will pay more out of your pocket in the event of an accident.
It also pays to review your policies annually – especially if reduce the risk to the insurance company. (Like where you haven’t had accidents or claims.)
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All info was correct at time of publishing