Insurance for Cars – a Basic Guide

insurance-for-cars

Have you ever wondered what the use of getting insurance for cars is?
At its most basic level, car insurance is for financial protection.

Do I need car insurance?

Even though the vast majority of car on South African roads are not insured, this doesn’t mean that you should become just another number. While most drivers complain about excessive costs, the truth is that this is contributing to the escalating costs.

So the simple answer is yes.

If you’re still wondering if it’s worth it, all you need to do is consider the high accident rate in South Africa, as well as the high rate of crime. You really don’t want to find yourself out-of-pocket if your car gets stolen or if you get into a car accident.

If you’re buying your car through the bank you will be required to get comprehensive car insurance. This is because the bank wants to protect its asset fully.

Where can you get insurance for cars?

There are various car insurance companies in South Africa that are able to meet your needs.

How can you get insurance for cars?

There are three ways that you can get this type of insurance:

  • Directly from the car insurance companies
  • Through a comparison website online
  • Through a broker

How are premiums calculated?

  • Insurance companies base their decision on a number of factors, such as:
  • Your car type
  • Your age
  • Your previous claims history
  • Where you live
  • How long you’ve been driving
  • How often you drive
  • The type of car that you drive
  • Your credit rating

You should base your decision on affordability and the type of cover that you need.

Types of car insurance cover you can get:

  • Comprehensive cover
  • Third Party, Fire and Theft cover
  • Third Party Only

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