Car Insurance Premiums Facts

It’s important to understand how premiums are calculated and to be aware of the most common factors that have an impact on motor insurance.

Here are few facts about car insurance:

In South Africa, if you are looking for car insurance, you can choose between three main types of insurance cover:

Comprehensive Cover:

This is the most expensive and extensive type of cover. You are able to get cover for theft, hijacking, accidents, fire and natural disasters, like hail and floods. It also covers you against claims by third parties where you are responsible for damage to their vehicle.

Third Party, Fire and Theft Insurance:

This cover is similar to Comprehensive cover. This type of cover does not however, provide cover for accidental damage to your vehicle. You get cover for theft, hijacking or fire.

Third Party:

This is the cheapest form of insurance. It provides cover for any damage you may cause to someone else’s vehicle.

Your car insurance premium isn’t affected by the colour of your car

While many people place a lot of emphasis on the type of car there are some people who think that insurance companies also consider the colour of your car. The truth is that insurance companies place more emphasis on the actual type of car that you drive. If you drive an SUV or a sports car with a lot of power, chances are that the insurance provider will consider you as high-risk.

Your insurer is more interested in knowing if you’ve had any previous accidents, the number of kilometres you drive and where you live.

The type of vehicle you drive is important

There may be limits in respect of age and nominated drivers

You must be specific about the exact use of the car beforehand

Numerous factors are used to decide on your premiums

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