A Guide to Car Insurance Policies

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July 28, 2021

Why Need Have A Car Insurance Insurance Policy

If you happen to be planning to drive a car in South Africa or whatever reason it is, here is an article that will give you an insight and also state all that you need to know about policies surrounding motor car insurance in South Africa

Car insurance cover is what keeps our finances in check especially during accidents.

Car insurance is put in place to help one financially during cases of accidents or damaged vehicles. For any auto collision that occurs, whether it is the other party’s fault or it is your fault, your car insurance will go a long way in helping you.

Types of Auto Insurance Cover

The extent of the help you will get during an unprepared time is up to you, and the combination of options that makes up your insurance policy is what determines this extent. Some examples of car insurance types you need are personal injury protection, liability insurance, comprehensive insurance, and collision coverage and almost every region requires some sort of liability coverage for car owners.

According to research, 70% of cars in South Africa aren’t under any insurance coverage. This is because In South Africa, unlike most other countries, car insurance isn’t so compulsory. Nonetheless, because of the high rate of vehicle thievery and car accidents in South Africa every year, it is better to be on the safer side by applying for one and avoiding these unnecessary expenses.

There are a lot of car insurance companies in South Africa and these policies insure the vehicle, not the driver. But you have to list the driver of the car. You can have more than one driver but this would incur an extra premium cost. The prudential authority is an arm of the South African reserve bank and they are responsible for the regulation of the car insurance sector in South Africa.

In cases of migration, if you have insurance coverage in another country, it will become useless after migrating to South Africa because you won’t be able to use it. However, if your insurance follows an international policy or a comprehensive policy that involves coverage abroad, such policy will be applicable then.

But it is safer to make enquiries from the insurer to find out whether it will be applicable in another country or not. However, whether your insurance policy is valid in South Africa after migration or not, it is quite important to register your vehicle with the South African authorities after a fresh migration or importation.

Types of car insurance in South Africa

Comprehensive car insurance

This is the most comprehensive, extensive, and most expensive insurance coverage. The insurance covers everything and this includes theft, damage and other costs concerning your car and third parties during cases of accidents. Policy rules as regards this are largely dependent on the insurer, so you have to do well to confirm all these details before getting coverage.

Limited car insurance

Limited car insurance is cheaper than comprehensive coverage and it also covers ones against third party claims. But in this case, you do not have coverage for your own vehicle’s damages during cases of collision.

Third party car insurance

This is the cheapest of the three and it covers only damages done to other people’s property. This isn’t a good choice except if it is a very old vehicle. But it won’t cover if the car is driven outside of South Africa.

Insurance Costs and excess

Asides from the car insurance in South Africa, premium costs will be based on other factors. This includes:

Present value of your vehicle
Your driver’s profile and this includes your health, serving history and health.
Where you presently live
How often you drive because some insurers offer discounts or an option known as pay-as-you-go for drivers that don’t travel too much.
What your car is used for
How many drivers you have listed on your policy coverage.

In addition, the coat is usually affected by your deductible or excess. This defines the amount that must be paid towards any claim you make. Every insurer usually has an excess that is compulsory but you can choose to increase this if you want to make your monthly premiums lower.

Conclusions

Whether you are a citizen or not, if you drive a car in South Africa, you need to get a car insurance policy. This article briefly explains some tips about the car insurance company in South Africa which will serve as a guide.