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Different types of Car Insurance

Having insurance on your vehicle will protect you from disastrous financial loss if you are involved in an accident with an uninsured vehicle.

According to the AA (Automobile Association), at any time, there are over a million uninsured drivers on the roads with legal vehicles and about 800,000 unregistered, illegal vehicles. That means about 70% of people on the road don’t have insurance. Next time you are in traffic, look around: Most of the vehicles you see are not covered with car insurance and if they damage your vehicle you would not be compensated.

Claims in South Africa are settled under “Partial Fault” rules, which means you can be responsible for a portion of your damages even if you are not fully at fault. If you are driving down the road and someone backs out in front of you, the accident could be deemed a partial fault because of your speed. In that case, you or your insurance would pay a portion of your damages to your vehicle.

Having insurance on your vehicle will protect you from disastrous financial loss if you are involved in an accident with an uninsured vehicle. While the Road Accident Fund (RAF) offers limited third-party liability for bodily injury or death, it does not protect your vehicle.

Once you file a claim with the RAF you have no further recourse, if the claim is not settled in your favor the decision cannot be reversed. If you have your own insurance, then you can file a claim with your insurance, and they will advocate for you and help you find the best settlement for your accident.

Where should I get car insurance quotes?

Check with different insurance companies for rates. Compare policy terms on the quotes offered to you and make sure you are comparing apples to apples on coverage. Every insurer offers special coverages like Pothole Damage or Emergency Medical. When you compare quotes decide what coverages are important to you.

After understanding your requirements, we will source quotes from some of South Africa’s top insurance companies.Check with the FSCA (Financial Services Conduct Authority) to see that the insurance company you are considering is a legit and authorised insurer.

Car insurance coverage

The Public/Passenger Liability portion pays for injuries your negligence caused another person, including a pedestrian or in some cases a passenger in your vehicle. Limitations apply based on the service provider you have purchased your cover through.

The Property Damage portion pays for any damage caused during an accident or result of an accident – this may be to a vehicle, a fence, or any type of property. When you choose your limit think about the value of other vehicles on the road or property you may damage, the average is R 10,000.

Medical Payments is an optional coverage that pays small limits to occupants of your vehicle that are injured, regardless of who is at fault in the accident.

Uninsured motorist coverage, roadside assistance, and retail coverage upgrades are available as add on coverage's.

Comprehensive Coverage covers your vehicle for certain events – hijacking, fire, and accidental damage. These can vary from company to company, maximize your cover so that you are protected against all insurable events.

Courtesy Car coverage will take care of a loaner vehicle if your car is in an accident that your insurance company pays for.

Roadside assistance can also be included in your auto insurance. This coverage will provide a tow truck or mechanic in the event of a breakdown or accident.

Types of coverage available

  • Third Party Only

    Third Party policies do not offer any coverage for your vehicle but protects you if you cause damage to someone else’s property or injure someone else. These policies offer limited coverage to protect your financial assets if you injure someone else but does not protect your property.

    If your vehicle is paid off or you can afford to repair it in an accident, Third Party Only coverage may be the best option for you. This type of coverage is the most affordable because of how limited the coverage is.

  • Third Party with Fire and Theft

    Third Party with Fire and Theft has limited coverage for your vehicle and protects you for damages you cause to other people. Coverage for fire, theft, and hijacking is included with this policy.

    This policy is excellent for people who have vehicles that are affordable to repair or who do not drive much. In most cases the rates are less than Comprehensive Coverage while still offering you protection if your vehicle is involved in a fire, stolen, or hijacked. There is no coverage if your vehicle is in an accident with another vehicle, though.

  • Comprehensive Insurance

    Comprehensive Coverage offers coverage for your vehicle and protects you from damaging other property. When your car is financed most banks will require Comprehensive Coverage.

    This policy covers your vehicle from fire, theft, hijacking, natural disaster, or an accident with another vehicle. In the event of a claim you are only responsible for the excess to repair or replace your vehicle.

    If you are in an accident that is partially your fault, your insurance will help you file the claim and settle your damage. There is peace of mind having your vehicle fully covered and being protected if you cause damage to another person.


Car insurance excess and how it works

The insurance excess cost is one of the most important things to consider before opting for a new car insurance. Low insurance premiums usually translate into high insurance excess cost.

Find out more