Understand your car insurance

5 July 2016

We all know the importance of car insurance in protecting yourself from the potentially massive costs associated with an accident. But, do you know what’s included and if this actually matches your needs?


Car insurance can be a minefield with countless policies available. Whether looking to purchase car insurance for the first time, or your current policy is up for renewal, there are certain questions that need to be considered before you sign on the dotted line:

The Cover

While comprehensive cover is the best option, your insurer can customise your policy to suit your budget should you not be able to afford this. When choosing the type of cover your finances should be a major consideration – car insurance is often a monthly expense, so before committing to a policy, make sure it fits within your budget or shop around until you find one that works. If your budget is tight, options such a total loss product can come in handy, protecting you financially in the event of your car being written off or stolen and not recovered. However, be aware that repairable damage to your car will be at your own cost – can you afford to fix it yourself? Consider the minimum (and maximum) risk you want to take.

The Excess

Make sure you are comfortable with the excess amount on your policy. Accidents do happen, therefore ensuring you can afford your excess will help to lighten the load should you be involved in one. To help for this, understand how much of a non-planned expense your budget can take.

The Extras

Many insurers will include value added benefits in a policy, such as car hire. However, it is vital to consider whether or not you need these extras, whether you can remove them from your policy, and whether your premium will decrease if you can. For instance if you have two or more cars in your household, you may not need a hire car. Whatever your needs, you can be sure that there is a policy that suits you, it just may take that little extra homework.

MotorHappy (PTY) LTD is an Authorised Financial Services Provider FSP 46123.


This article is intended to be used and must be used for informational purposes only. We do not make any warranties about the completeness, reliability and accuracy of this information. Any action you take upon the information in this article is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of the information contained in this article.

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