What is the best car insurance in South Africa? Choosing the right car insurance can be a confusing process. There are so many different policies on offer, each with its own set of benefits and exclusions. It’s important to understand what those terms mean before making your decision. In this guide, we’ll take you through some of the common types of cover to help you decide what car insurance you need in South Africa.
It depends on what cover you want
- You need to be aware of what you want from your insurance
- You need to know how much you can afford to pay for it. What’s your monthly budget?
- Do you have a car that’s worth more than average?
- What would happen if someone crashed into your car and it got damaged beyond repair? Are they going to pay out the full value of the vehicle, or just make good on repairs (and possibly loss of use)
- Keep in mind how much you can afford for excess as well.
What are the different types of insurance in South Africa?
You have a choice of a few types of insurance. The most common are third-party and comprehensive car insurance.
Third-party car insurance is a popular choice in South Africa. This type of cover protects you against an accident that was your fault but does not include protection against damage to your own car, or loss/theft of personal items in the vehicle.
Short-term insurance covers your vehicle for a short period of time against theft, damages, hi-jacking and accidents.
Comprehensive car insurance provides protection against all types of accidents. These premiums can be expensive because it also covers loss/theft and accidental damage as well as any injuries suffered by passengers due to accidents.
Let’s revise these options in a bit more detail…
Third-party insurance is the most basic level of car insurance in South Africa, and it covers you if you are in an accident that’s your fault. It also covers damage to other people’s property and damage to your own car. It doesn’t cover damage done to yourself or any passengers in your vehicle.
Short-term insurance is the cheapest and most convenient type of car insurance, but it’s not right for everyone. If you only use your car occasionally and don’t need to drive much, short-term insurance might be a good option. They are less expensive than long-term policies because they exclude certain benefits.
However, when choosing between short-term vs long-term, it’s important to remember that there may still be restrictions on how often you can claim from your insurer over this period (for example if it’s an annual policy then only one claim per year).
Comprehensive car insurance covers the cost of repairs to your vehicle if it is damaged by an accident, fire, theft or vandalism. This type of policy also provides coverage for damage caused by natural disasters and animals.
Comprehensive coverage is important because it covers anything that isn’t specifically excluded from your policy. In most cases, this means that when you file a claim on your comprehensive insurance policy, the insurer will cover the cost of repairing damages to your car caused by things like:
- Fire (including electrical fires)
- Theft/or attempted theft (whether from inside or outside your vehicle)
- Vandalism (including acts meant to cause harm such as graffiti tagging)
- Repairs for damage from accidents
What is the best car insurance in South Africa?
- Choose the cover that best suits your needs and budget.
- There are many insurance companies offering car insurance, but not all of them can offer you a good price for the cover that you need. Shop around for the best car insurance quotes.
- Car insurance is important to protect yourself from financial loss if something goes wrong with your car or someone else’s vehicle damages yours.
By now, you should have a pretty good idea of what car insurance is, how it works and what type of coverage you need. If there are any questions left unanswered or if you need more help with finding an insurance company that suits your needs, feel free to contact us at any time! We’re always happy to help our clients find the best possible deal on their policy.
This article is for informational purposes only and should not be construed as financial or legal advice. Please consult with your broker or legal advisor for the exact legal requirements for your insurance.