Car insurance is available for motor cars, motorcycles light delivery vehicles, caravans, and trucks. Car insurance is required if the vehicle is used to provide emergency services (such alarm company cars), and it is often necessary to obtain business policies.
There are three types if insurance for your vehicle:
* Comprehensive cover
* Third party, fire or theft insurance
* Third party insurance
Let’s look closer at each type.
Comprehensive cover:
If your car is still under finance, this coverage is mandatory. While it’s more expensive, this insurance is still the best. This is called comprehensive insurance. It covers all of the following:
- The damage to your car when you were involved in an accident (excluding your excess which is a payment you must make if you have a case).
- We call it “Third-party coverage”. It covers the full or partial damage to any other vehicle that was directly involved in your crash.
- It is possible to cause damage or complete destruction to your vehicle by using fire.
- The theft and/or taking over of your car (some policies exclude this completely or require you to pay higher excesses, so be sure to review your policy.
Third party, fire or theft cover
This insurance does not protect you for any damage to your own vehicle. It is cheaper to get this type of coverage, but it could mean that you will not be able, if necessary, to replace your car. If you have this protection and are injured in an accident, you can claim against your policy. Also covered are fire damage to your car, theft or hijacking.
Third party insurance:
This coverage is the cheapest, and it will not provide protection for other vehicles as explained in the previous paragraph.
Car insurance usually does not cover the following:
Car insurance will not cover normal wear and damage to your car. You should also make sure you carefully read your policy schedule. This will allow you to know what types of coverage are excluded from your policy. Your car is not covered for damage caused by intentional acts, just like most insurance policies. When you travel outside South Africa, make sure your car has insurance that covers you. In this case, you will need a certificate from your broker to confirm that you have car coverage. This certificate needs to be presented at entry.
Absa Idirect will help you obtain car insurance.
