For most car insurance companies in South Africa, there are three types of car insurance available, namely comprehensive car insurance; third party, fire and theft cover; and third party cover.
In this article, we will look closely at these three types of car insurance, so that you can be well informed when it comes to making a decision about which type of car insurance is right for you.
Comprehensive car insurance is the most extensive car insurance option available. You are covered for theft and hijacking, as well as any damage caused by weather conditions or accidents. Comprehensive car insurance also covers you if you are responsible for an accident and need to pay for damages sustained to another vehicle. It is the most expensive car insurance option available, but it is often well worth it.
- Third party, fire and theft cover:
This type of car insurance is similar to comprehensive cover, except for the fact that it does not cover you if you accidentally damage your car. If your car is damaged or lost due to hijacking, weather conditions, or fire, then this type of insurance will have you covered. However, if you are involved in a vehicle accident, or if you accidentally damage your car and it is within your control, then you would have to cover the repair or replacement costs of your own vehicle yourself. In the event of your car being damaged due to theft, fire or weather conditions, any third party involved will also be covered.
This type of car insurance will only cover any damage caused to another person’s vehicle (the third party), as well as any injuries incurred by the third party involved in the accident. This option does not cover you against loss or damage to your own vehicle caused by accidents, fire or theft. This is therefore the cheapest of the three options. If your car is paid off or is of a relatively low value, then it may be a wise option to opt for the Third Party Only cover in order to avoid having to endure the costs of a third party’s expensive car repairs.
Although it may be tempting to opt for a cheaper type of car insurance such as Third Party Only cover, one needs to carefully weigh up the pros and cons. Although choosing a cheaper option may mean paying a lower premium, it could become very costly if you are involved in an accident and have to pay all of the repair and replacement costs out of your own pocket.
Rather be safe than sorry!