Car Insurances
Insurance inschmurance. It’s not compulsory. Neither are airbags. Unlike car insurances in the UK and United States, car insurance in South Africa is not compulsory for non-financed vehicles. Lenders, such as banks, make it compulsory for drivers to take out comprehensive car insurance to protect their vested interest in the asset, but as yet, no legislation makes third-party car insurances obligatory in SA.
The department of transport and the South African Insurance Association aren’t so much concerned about your car as they are about the insured Aston Martin you rear-ended, and the bucket-loads his insurer won’t be able to recover from you. With such a range of car insurances available, everyone can afford insurance.
Third-party car insurances
As the name suggests, these types of car insurances protect not your vehicle from accidental damage, but the damage caused to third-parties. It’s the least expensive type of insurance and perhaps the most important.
Third-party fire and theft car insurance
Less comprehensive than comprehensive insurance, third-party, fire and theft car insurances protect the driver from damage he or she caused to third-parties, theft or hijacking and fire. As a result of the theft cover, this is more expensive than third-party car insurances.
Comprehensive car insurances
Covering you for damage to third-parties, damage to your vehicle, fire, theft and hijacking, comprehensive car insurances are the most expensive. The higher risk on the insurance company makes for higher premiums, but it’s still cheaper than paying for a financed car that’s been written off.
Even if you’re paying for comprehensive car insurances, it doesn’t mean you have to pay exorbitant fees. Compare insurance quotes and you could save on premiums. So shop around for car insurances and see what info you can find online.