Car Insurances Explained

Getting car insurance is more of a necessity nowadays. With the poor condition of many South African roads and the low number of people with car insurance, it makes sense to make sure that you protect yourself financially.

What type of car insurance do you need? Well that depends on a range of factors. This could be how often you drive, where you live, where you park your car during the day, etc.

You also need to consider what you can afford to pay monthly. There are three main types of car insurances:

Comprehensive insurance

This type of car insurance is the most extensive cover. It essentially covers all eventualities unrelated to a covered accident. So if your car is damaged by hail, fire or natural disasters, you’ll be covered. It also covers you against claims by third parties where you are responsible for damage to their vehicle. If your car is stolen or hijacked, you’ll be covered.

Due to the scope of cover it provides, carrying this type of insurance can be quite costly.

If you buy a new car through a financial institution, this type of cover will be compulsory.

Third Party, Fire and Theft

A less expensive offer, this type of car insurance covers you if your car is lost or damaged due to theft, hijacking or fire.

It doesn’t provide cover for accidental damage to your vehicle however.

If you’re involved in an accident, you have to cover the repair or replacement costs yourself.

Third Party Only

This is the cheapest of the car insurances and provides cover for damage you may cause to someone else’s vehicle. It’s best suited to cars that are paid off or cars that have a relatively low value.

This type of car insurance covers the costs associated with the accidental death or injury of third parties involved in the same accident. There is no cover for damage to your own vehicle.

 

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