Considering getting car insurance? Here are 5 things you need to know

In South Africa, car insurance isn’t mandatory unless you’ve taken financing from a bank for your car. Car insurance is expensive in South Africa, as there is ongoing crime in the country as well as unlicensed- and bought-licence road usage. But maybe you are considering car insurance anyway.

With the Indian economy growing, more families are looking to own more than one car. This is far better than having to rely on public transport. In India, when you buy a car, third party motor insurance is mandatory as this insurance at least protects the car owner from legal liabilities to a 3rd party.

South Africa offers 3 kinds of car insurance – comprehensive cover, 3rd party, fire and theft cover and just 3rd party cover. Road users are encouraged to at least choose 3rd party cover.

There are important factors to look at with car insurance in South Africa –

  1. Considering car insurance – What is this 3rd Party Insurance?

Damage that you cause to another person or vehicle is covered by your insurance policy. It doesn’t cover damage to your car though. Third party insurance is better than nothing at all and certainly if you’re on a Why You Should be Considering Car Insurancebudget it can be worth getting. Also if your car is paid for and you want some form of protection, this 3rd party insurance can help. Unfortunately in South Africa, theft is rife, and if your car is hijacked or stolen, you won’t have insurance cover.

  1. Considering car insurance – Top Up Cover

The benefit of top up cover becomes more important during the first 2 years of buying a new car. A top up policy is targeted towards those who have bought a new car on a finance agreement. Top up cover takes care of the additional amount if the cost of settling your car finance is more than the insurance policy cover payout. This cover is for those who have an existing car insurance policy such as 3rd party cover or comprehensive car insurance.

  1. Considering car insurance – Deductibles

Insurance agents don’t have to tell you about discounts which could possibly apply to your car insurance, but even so, there are things you can do which can change the way car insurance works. If you’re involved in an accident, you’ll have to pay a certain amount of money towards repairs before your car insurance company will cover the rest of the costs. Known as a deductible, it can effect your insurance premium. If you want to lower your car cover premiums, ask for a higher deductible.

  1. Considering car insurance – No Claim Bonus

Most car insurers in South Africa offer a No Claim Bonus – a sum of cash paid back to you after a certain period for not claiming. It is an incentive of the insurers to ensure drivers drive more responsibly and don’t easily claim. These no claim bonuses aren’t all the same and for insurance if you claim for windscreen repairs you could see your no claims bonus falling away. Your premiums have to be paid in full every month if you want to benefit from this bonus.

  1. Considering car insurance – Your Claim could be Rejected

Some car owners are alarmed when they find their claim being rejected. Unlicensed drivers, those driving drunk and driving an unroadworthy vehicle will see your claim being rejected. People sometimes take conditional cover and the terms will need to be adhered to if you don’t want your claim being rejected.

Car insurance can spare you a lot of financial stress but it can be so expensive to cause you even more stress. Therefore do plenty of research when you shop for your insurance for your car so that you get the best policy at a reasonable price.

Use the form on this page to request a car insurance quote. Type in your details then submit the form. We will return to you with a personalised quote.


All info was correct at time of publishing October 5, 2018