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19/04/2021

Car Insurance

Car insurance in South Africa is not compulsory. However, there is a high number of road accidents, vehicle thefts along with hijacking in South Africa each year. Thus, it makes sense to take out a good car insurance policy to protect yourself against unnecessary expenses. There are many insurers that provide car insurance coverage, but because in South Africa it isn’t mandatory, many drivers don’t have it. In fact, around 70% of cars in South Africa are not insured according to research.

Comprehensive car insurance

This is the most extensive coverage. If you finance for your car, the bank will insist on comprehensive coverage. As the name implies, comprehensive insurance covers pretty much everything including fire, theft, damage, and costs to your own car and third parties in the event of an accident where you are at fault. Policies vary between different insurers, so you’ll need to check whether things such as breakdown assistance is included or not and for coverage crossing borders.

3rd Party Fire and Theft car insurance

This cover is somewhat cheaper than comprehensive coverage and covers you for fire, theft, and hijacking. It also covers you against third-party claims. However, you don’t have coverage for your own vehicle’s damage in the event of a collision.

Costs and Excess

Besides the type of cover you choose, your premium is based on a number of different factors:

  • current value of your vehicle – check to see if your insurance is covering you for trade, retail or market value;
  • the driver profile – age, what year driving license was obtained, and claims history;
  • where you live;
  • what you use your car for - private, professional or business;
  • how many drivers are listed on the policy
  • occupation

In addition to this, your excess will affect the cost. This is the amount that you have to pay towards any claim you make. All insurers have a compulsory excess, but you can increase this in order to make your monthly premiums lower. Some insurers also offer a discount if you agree to install a tracking system on your vehicle.

Value Added Products

Extra cover is available, subject to insurer, you can add: Car Hire, Credit Shortfall, and Excess Waiver.

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