When you buy yourself a car you need to allocate some of your budget towards insurance for your car. While this type of insurance cover isn’t compulsory in South Africa, it is a necessity. The high rate of vehicle theft and hijacking in this country mean that individuals need to protect themselves from financial ruin in the event of a car accident, theft or hijacking.

In South Africa there are three main types of car insurance, including:

  • Comprehensive Cover:
    • This is the most expensive type of cover. You are able to get cover for theft, hijacking, accidents, fire and natural disasters, like hail and floods. It also covers you against claims by third parties where you are responsible for damage to their vehicle.
  • Third Party, Fire and Theft Insurance:
    • This type of cover does not provide cover for accidental damage to your vehicle. You get cover for theft, hijacking or fire.
  • Third Party:
    • This is the cheapest form of insurance. It provides cover for any damage you may cause to someone else’s vehicle.

What are the pros of getting insurance for a car?

If an accident happens and you have the right coverage, it’s covered under one policy.

You have the benefit of a limit on financial responsibility.

It protects drivers from lawsuits should they cause damage to another individual’s vehicle or body.

Your car can be covered by your home insurance, so you can make some considerable savings.

If your policy covers theft or hijacking, you won’t have the extra stress of paying a car off that is stolen.

It goes beyond the normal four-wheeler.

What are the cons?

It can be quite expensive. This depends on your specific needs and the insurance type you need.

You may not get the cover you want – especially if you don’t compare and shop around enough.

https://entireloans.com/wp-content/uploads/2016/10/a243.jpghttps://entireloans.com/wp-content/uploads/2016/10/a243-150x129.jpgAdmininsurancecar-insurance,vehicle-insuranceWhen you buy yourself a car you need to allocate some of your budget towards insurance for your car. While this type of insurance cover isn’t compulsory in South Africa, it is a necessity. The high rate of vehicle theft and hijacking in this country mean that individuals need...Compare Local Financial Products in South Africa