Which car insurance is right for you?

Today, there are around a million drivers on the road without car insurance. On the other hand, numbering around 800,000 are their counterparts with illegal and unregistered vehicles. So, approximately 70% of the drivers you see on the road today do not have car insurance. When next you are stuck in traffic, put this into perspective; and you will quickly realise that because most of the cars around you have no insurance, any damages incurred to your vehicle will likely go uncompensated.

In South Africa, claims are settled under a law known as “Partial Fault”. Here, even when you aren’t wholly responsible for the damage(s) done to your vehicle, you are still liable to cover some of the cost of the incurred loss. For instance, if you were driving down the road, and another car seemingly out of the blue, backs out right in front of you, the Partial Fault rule may apply. In this case, you may be held partially liable for the accident due to the speed of your vehicle. Thus, your insurance would have to step in to cover some of the cost of the damages to your car.

While the Road Accident Fund (RAF) offers limited third-party liability for either death or bodily harm resulting from an accident, it does not cover damages incurred by your vehicle. It is wise to have your car insured as it can save you paying a substantial amount of money in damages if you are involved in an accident with an uninsured vehicle.

Under the RAF, decisions cannot be overruled, especially once they are in your favour. So, once the judgement goes in your favour, you can have no further complaints or additional claims. However, if you are covered by insurance, you can file a claim with your provider, and they will work on getting you the best kind of settlement for the accident and damages.

The preferable route to go would be to get rates and quotes from various insurance companies and compare them. Ensure that you are comparing identical rates and policies. Some providers will offer additional coverage such as Emergency Medical or Pothole Damage. Again, when comparing quotes, look out for coverage that covers claims that are important to you.

If you are looking for the best way to get a car insurance quote from various top insurance firms in South Africa, then look no further than the experts at MororHappy. The insurance gurus at MotorHappy can help you find the ideal insurance provider and coverage for your needs.

Also, you can try talking to friends and family for a possible referral. However, ensure that you first confirm that the insurance company is a member of the South African Insurance Association (SAIA). Membership in the SAIA demonstrates financial stability and also indicates that the insurer is registered under the Financial Services Board. Thus, the SAIA should be your most important benchmark when it comes to picking an insurer.

Bodily injury coverage caters to any injury or harm to the body caused by another person, including another driver, a pedestrian and in some cases, a passenger in your vehicle. Generally, there are no limits to the amount of financial compensation to bodily injury and death claims that can be filed under this policy.

Property Damage portion covers any damage arising from your end – this can include a damage to a property or another vehicle. One important thing to consider while setting a limit is the average value of other cars on the road or properties that you may damage during an accident. The average for this cover is about R10,000.

Medical payment is an optional coverage that pays a certain small fee to any occupants in your vehicle that sustains an injury in the event of an accident. This payment is automatic, regardless of the circumstances preceding the accident.

Comprehensive coverage protects your vehicle against certain kinds of danger/damage such as fire, hijacking or accidents. The details of the coverage will vary from provider to provider, so be sure to pick one that caters to your need.

The Courtesy Car coverage will cover any liabilities arising when a loaner vehicle that is being paid for by your insurance company is involved in an accident.

You can also opt to include roadside assistance coverage to your auto insurance cover. This coverage will provide a mechanic or a tow-vehicle in the event of an accident or breakdown.

• Third-Party Only Coverage 

Third-party coverage only covers damages caused by your vehicle to either a person or property. This kind of coverage does not offer any form of cover or compensation for your own vehicle/property.  This coverage provides limited coverage to protect your financial assets in the event of an accident.

Third-party only coverage is ideal in cases where you outrightly own your vehicle and will be able to pay for the cost of a repair in the event of an accident. This coverage is often inexpensive; however, remember that the coverage is minimal.

• Third-Party with Fire and Theft

Third-Party with Fire and Theft only partially covers your vehicle and protects you from damages caused by you to other people. Also, coverage for theft, fire and hijacking is included in this policy.

This coverage is perfect for people who sparingly drive their cars or have vehicles that are affordable to repair. Generally, the rates for this coverage is lower than that of a Comprehensive Coverage. However, they still offer you the same cover if your car was hijacked, stolen or involved in a fire incident. Furthermore, this coverage does not protect you from any damages that may incur when your vehicle is involved in an accident with another vehicle.

• Comprehensive Insurance

Comprehensive Coverage offers insurance for both your vehicle and damage to property. If a bank finances your car, they will typically demand that it is put under this coverage.

This policy insures your vehicle from theft, natural disaster, fire, hijacking or an accident with another car, regardless of the culprit. Furthermore, all claims are covered except the excess that is required for your vehicle repair or replacement.

If you are slightly responsible for an accident, the insurance company will file a claim and settle the damages on your behalf. A comprehensive insurance policy offers the best kind of cover for your vehicle, such that even when you are responsible for an accident that causes damage to another party, you will still be fully covered and protected.