Car Insurances
Unless your car is financed, car insurance isn’t compulsory. Unlike car insurances in the US and UK, third-party car insurance in South Africa is not compulsory. The only reason lenders make comprehensive car insurance compulsory is to protect their vested interest in the asset.
The department of transport and the South African Insurance Association have been in talks to make insurance compulsory for all drivers. Uninsured vehicles are threatening the short-term insurance industry in South Africa. Whenever an insured vehicle is involved in an accident with an uninsured vehicle, the innocent party’s insurance company pays out for repairs. Ordinarily they recover these funds from the guilty party’s insurance company.
If there is no such insurance company, the insurer attempts to claim the money back from the guilty party. This, though, is rarely successful, and results in the insurer paying for uninsured vehicle damages. This pushes up the price of premiums as insurers have to make up for the short fall.
With the range of car insurances on the market, there is no excuse for drivers not to have insurance. The South African insurance industry is also competitive meaning not only a comprehensive range of car insurances but also more option for cheaper premiums.
Comprehensive car insurances
The most expensive of the car insurances, comprehensive car insurance covers drivers for damage to their vehicle, third parties, fire, theft and hijacking. The cost of comprehensive car insurance is influenced by the type of car you drive as the cost to repair vehicles increases year on year forcing insurers to push up premiums.
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Third-party fire and theft car insurance
Not as comprehensive, third-party, fire and theft car insurances protect the driver from damage caused to third-parties’ vehicles as well as for theft or hijacking and fire. As this insurance includes theft, it is more expensive than third-party car insurances.
Third-party car insurances
The most basic form of all the car insurances and the cheapest, third-party car insurance is compulsory in other countries. This protects the insured from damage caused to other people’s property and saves the insurance industry from suffering loss even when their policyholder is innocent.
No matter which of the car insurances you buy, you are likely to get cheaper premiums by comparing insurance quotes.
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