Third Party insurance: A cheaper option, but with minimal cover

If you drive an old car that is paid off and not worth much, Third Party insurance might be an option to consider. Third Party insurance makes sure you’re covered when somebody else claims against you if you cause an accident or damage when driving. However, it does not pay for repairs to your vehicle.

Third Party is a risky option because if your vehicle is damaged or written off, you receive no compensation. It covers you only if you damage someone else’s property or injure them while driving.

If you're financing your car, it's likely that the financial institution will require you to purchase a Comprehensive Insurance Policy before you take possession of your car. However, if you drive an older model car, you might not need the full protection offered by Comprehensive Insurance and you could consider Third Party insurance. This type of insurance is best for people who have an older car that’s already paid off, or for those who don’t drive their car very often.

 What is covered by Third Party Only insurance?

If you have an accident while driving the car that's listed on your policy, third-party insurance covers you for:

• Third-party injury to a passenger or a person in another car
• Damage to another person's car
• Damage to another person's property

If you are involved in an accident, you are required to first pay the excess amount, and then your insurance will cover the rest of the cost of damage. The amount paid out will depend on the excess amount you select.

Remember, the cost of damage to your vehicle is not covered at all. If the accident was caused by someone else, they are responsible for covering your damages.

 Customise your insurance to your needs

You might be able to add extra levels of cover, like personal injury, to your Third Party policy, so it's worthwhile working with a MotorHappy agent who will source a variety of quotes from South Africa's top insurance policies. Remember, MotorHappy is available to guide you through the entire process, helping you to weigh up which option is best for you. Click here to request a quote.