What you need to know before buying vehicle insurance:
Having insurance is more of a necessity than a luxury in South Africa. Considering the high rate of accidents, the high rate of crime and various potholes on the country’s roads, having insurance will provide you with the necessary cover to protect you against the risk of the unexpected.
When insurance companies decide on how much to quote you for your vehicle insurance, there are a number of factors they consider, including:
- The make and model of your vehicle
- The age and condition of your vehicle and it replacement value
- Where you live and where your car is parked overnight and during the day
- What your car is used for
- Your age
- How long you have been driving for
When comparing vehicle insurance, don’t make a decision based on the premium only. Make sure that you know about any hidden costs. Make sure that the vehicle insurance you use is suitable for your specific needs and your budget.
Get at least three comparative quotes.
Make sure that you have a checklist of what you want your policy to cover
Make sure that the insurance company you use is a registered financial services provider
What types of vehicle insurance do you get?
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.
