What types of car insurance is there?
In South Africa, it is not compulsory to have car insurance, unless you bought a new auto through a financial institution.
Unfortunately, more than half of the drivers on South African roads do not have a vehicle cover in place. It means that chances are that when you are involved in an accident, the other driver might not even have car insurance. You can also assume that the driver will not be able to pay for your damages out of their pocket.
If you have car insurance, you will be at least in a position where you can repair your vehicle and arrange that the other person pays the excess. It is why you need to have at least the basic form of car insurance.
Financial service providers in South Africa offer drivers the option between three types of car insurance.
The three types of car insurance
- Third-party only cover
- Third-party with fire and theft cover
- Comprehensive cover
What is cheap car insurance third-party only?
Between the three types of vehicle cover plans, third-party only is the cheapest.
Here’s why.
Third-party car insurance is the most basic level of cover you can buy. It covers you if you have an accident that damages other people’s property or injures them.
It does not cover you for any damage to your car or injuries to yourself.
Third-party fire and theft car insurance meaning
Third-party cover will cover the damages done to another person’s vehicle or property where you were at fault.
In case there is a fire or your vehicle gets stolen, you will be covered by your car insurance. Your motor will be covered against thievery, attempted break-ins and hijackings.
Comprehensive car insurance meaning
Comprehensive car insurance covers damage to your car that is not caused by collisions, such as fire, theft, or vandalism. It also covers damage to other people’s property, such as their car, and medical expenses if you or your passengers are injured in an accident.
It will also cover all damages to your vehicle (although you will have to pay your excess amount).
It is an expensive option, but it is worthwhile if you get in a big accident. It will not only cover your damages when you are at fault, but it will cover third parties as well.
At times, depending on your financial service provider there will be other benefits included like scratch and dent, emergency car rentals, roadside assistance, tyres, and wear & tear. If these are not included, you will be able to add them with a small additional fee.
Conclusion
The three options for car insurance various in benefits and rates. Do not miss out on a car insurance policy, especially if you are driving on the roads of South Africa. It is not only for you, but essential to have when you accidentally damage another person’s automobile. Gather quotes and make the necessary comparisons to find the type of car insurance and price that will work for you and your vehicle.
