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SA's No 1 Insurance Blog

You really can’t afford to own a motor vehicle without having some sort of insurance for it. Insurance doesn’t have to be expensive – in fact there are many different kinds of car insurance that are really affordable and give you differing degrees of coverage.

From more expensive full cover to affordable basic cover, find the type of car insurance that suits your pocket and your needs:

 1.      Comprehensive

If your vehicle is financed then this is undoubtedly the best way to insure your vehicle. It covers the loss or damage to your vehicle through accident or theft and also covers your legal liability towards a third party in the event of an accident. The maximum amount, which will be paid out, is shown in your insurance policy.

2.    Comprehensive use excluding theft and hijacking

With this option only accidental damage and loss are covered, along with third party liability. So if you experience damage or loss caused by theft or hijacking, these costs won’t be covered.

3.    Third party, fire, and theft

With this option you are insured for loss or damage to the vehicle caused by:

  • Fire, lightning and explosion
  • Theft or attempted theft

Third party liability is also covered in the event of an accident. So if you’re involved in a bumper bashing your insurer will pay out to cover costs of any third party, but wouldn’t cover the cost of damage to your vehicle for example.

4.    Third party only

This option only covers your liability to a third party in the event of an accident. This type of cover makes sense if the value of your vehicle is so low that it doesn’t make sense to comprehensively insure it. You would, however, want to be covered if you happened to be in an accident with a very expensive car, as you may then be liable for costs related to repairing that vehicle.

Make sure you get your motor vehicle covered correctly.

Until next time.

The InsuranceFundi team