Car Insurance Policies in South Africa

    December 12, 2016

    Your car is something that is precious to you – can you imagine living without it? In fact, for most people, their car is the second most valuable asset they’ll own. Get car insurance, but there are many car insurance policies out there.

    But with rising costs and car payments, taking out insurance for your car can seem like a secondary consideration. After all, how likely is it that you are going to cause an accident?

    Different Types Of Car Insurance Policies

    In this article, we will discuss the three top types of insurance in South Africa and what each entails. It will enable you to make an informed decision when it comes to insuring your car.

    Comprehensive Cover

    car insurance policiesIt’s the cover that most of us aim to have. It is expensive, but you are safe in the event of theft, damage or an accident. You are also safe if you destroy someone else’s property with your car.

    The amount that you pay on a monthly basis will depend on the amount of risk you pose to the insurance company – so they look at the value of the car, your age, your credit history, your claims history, etc.

    If you have taken vehicle finance, you will probably find that the contract requires full cover for the car until you pay back the vehicle loan.

    Third Party, Fire and Theft Cover

    It’s less expensive than the full cover, but you are not covered for accidental damage to your car. If your vehicle is stolen or destroyed, your insurance company should pay out. If you damage someone else’s property in an accident, your insurance company should pay out.

    You, however, will have to foot the bill for the repairs or replacement of your car.

    If you are experiencing budgetary constraints, this cover makes sense for you – protecting you from having to pay for car repairs for someone else or having to replace your stolen or fire-gutted car.

    Third Party Cover Only

    It’s is the lowest level of cover that you can get and is only advised if you have a car that you seldom use or a car that has a small value.

    This insurance costs the least out of the three but also provides the least amount of cover.

    If you are in an accident, this cover will pay for the damage to the other person’s property.

    If an accident damages your car, or someone steals your car, the insurer won’t cover you.

    Which Option is Right for Me?

    There are many car insurance policies. That is a question that only you can answer. I can only advise you to get the most comprehensive cover you can afford – even if that means scraping some luxuries out of your budget.

    Car repairs can cost a fortune, so you need to consider what the consequences are of not having full insurance.

    What will you do for transport? Can you afford to be without your car? What happens if the person who caused the accident is not able to pay for repairs?

     

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    All info was correct at time of publishing