Basic terms you need to know:
- Insurer- This is the person setting the insurance policy
- Insured- This is the person who has bought the insurance
- Liability- A person or behaviour or characteristic that can have you at a disadvantage
- Loss- The amount of money the insurance company will pay on a claim
- Premium– This is how much you pay each month
How insurance works:
Having insurance is a necessity these days. Insurance is paid for in monthly instalments and should you be involved in an accident or need repairs done to your car you will be able to make a claim with your insurer and an amount will be paid out to repair your car or the car of the third party driver.
What kinds of factors affect South African car insurance?
- Your neighbourhood
- Your daily distances
- Driving history
- Marital status
- The type of car you drive
Common myths related to car insurance:
I don’t need car insurance or can’t afford car insurance
Considering the high rate of car theft in South Africa as well the risk of accident damage, as a car owner, you need insurance. While car insurance isn’t compulsory in South Africa, the last thing you need is to be left out-of-pocket when you get into a car accident or if your car is stolen.
I have to wait for my old insurance to expire
You are free to change to another car insurance company at any time.
In case of a break-in, the insurance will cover everything in my cover
Your insurance company only pays for stolen items that are physically attached to your car like the radio.
Is it because I’m a woman?
Your age, gender, driving experience and car model are factors that affect the amount you have to pay monthly.