Understanding The Types Of Car Insurance
Comprehensive and third party cover: what do they mean for you?
Choosing the type of motor insurance that you need and can afford to purchase for to cover your car is easily as important as choosing the right insurer to provide that cover. Unfortunately, detailed information can be hard to find, and many of those on the lookout for short-term cover for their vehicles end up having to rely on getting their information directly from the insurance company they are dealing with. While your insurer probably has no reason to lie to you, you don’t really know if you’re getting all of the information you need, unless you study up and inform yourself.
In addition, if you’re looking to purchase car insurance for the first time, or are in the process of changing insurers, it is advantageous to know what you are talking about and exactly what policy option you’re looking for, before you begin the process of getting quotes and investigating specific insurers.
This article will arm you with that information, so that you can get a vehicle insurance policy, you know what you’re getting and you get what you need.
As the name implies, comprehensive motor insurance offers the most extensive cover available, financially safeguarding you in the event of accidental damage, theft, and hijacking. Additionally, comprehensive cover can also insure your vehicle against weather conditions, such as storms, fires and floods.
Finally, comprehensive car insurance covers you on a third-party basis, financially insulating you from the cost of covering another vehicle’s damages in the event that you are found liable for the collision that caused them.
Offering the widest range of options, comprehensive insurance is the most expensive type of cover you can purchase for your vehicle and is generally recommended for those with a more generous budget or who travel extensively, exposing their vehicles to greater regular risk.
Third-party, fire and theft insurance
Very similar to comprehensive cover, third-party, fire and theft insurance is also known as liability insurance, and covers your vehicle in the event of, as the name implies, theft or fire damage. If you have an accident however, a third-party, fire and theft insurance policy will only cover damages to the other vehicle, leaving the cost of repairing yours up to you.
This is a popular option for budget-conscious buyers who still want at least some limited compensation in the event that disaster strikes.
While South Africa has no laws necessitating car insurance, the existence of third party insurance means that no responsible driver has any excuse for not getting at least some form of cover.
The least expensive type of car insurance, third-party insurance offers no protection against damage to your vehicle in the event of an accident. But, by covering against damages, injuries or even death sustained by a third party in an accident for which you are determined to be liable, this cover type ensures that, should the unthinkable occur, you and your bank account will not find yourselves on the wrong end of another insurer’s claims department.
Don’t skimp on insurance
Whatever type of cover you choose, make sure that you select a policy that matches the limits of your budget, while affording the best cover possible to meet the needs of your personal and professional lifestyle.
Too many South Africans fail to insure their vehicles, rationalising the decision by pointing to the expense of car insurance. Unfortunately, this means that when the unforeseen happens and their vehicles are subject to theft, accidents, or damage, they find themselves without transport, or unexpectedly out-of-pocket.
While you might think that you cannot afford car insurance, the reality is that you cannot afford not to have it.