The Complete Guide to Car Insurance in South Africa

One of the most existing moments of your young adult life is getting your first car. Whether bought or given, it is a great feeling to have something that is yours. But then comes the daunting part of getting car insurance in South Africa for it!

With so many companies, types and big words, it can seem like an impossible task. But as always Once A Week Blog is here to help make some big words smaller so that when you speak to a professional advisor, you are prepared. So, this is our complete Guide to Car Insurance in South Africa.

car insurance in south Africa

What is Car Insurance?

Car insurance covers your car in a variety of different events depending on your cover. Every month the insurer will deduct a specific amount of money from your account that pays for your car insurance.

You can get cover Car insurance to help cover the costs if you are in an accident, collision or if your car is stolen. This is dependent on your cover option.

What cover options are there?

There are multiple covers and types of car insurance in South Africa to suit your needs. These do differ from insurer to insurer. It is also important to take note of what type of insurance is required if you are financing the vehicle.

Here are a few basic covers that are common in the insurance space:

  1. Third Party Cover – This cover covers the third party (i.e. other cars) in the event of an accident. Depending on your cover this can include damage to buildings and people as well. This is a very important insurance to keep as it can help you stay out of trouble if you mistakenly bump a Ferrari! Some insurers do put a limit on third party cover, and this is something you should discuss with your Financial Advisor or Insurance Broker.
  2. Collision, Fire & Damage Cover – This is the cover for your own vehicle in the event of damage or a collision. This amount will cover the repairs of your vehicle or as stipulated in your insurance contract. It is important to note road and driver restrictions as this can play a major role in the price of your cover.
  3. Good In Transit – This is one people don’t often know about. This is the cover for your stuff in your car such as your sell phone, laptop, or sports equipment being carried. This is an extra often found in car insurances. It is important to note what type of items are covered at some insurers do not cover electronics for example.
  4. Theft Cover – this is as it says. If someone steals your car, they will help you recover it and/or pay you out. This is dependent on your cover.
  5. Personal Liability – this cover is for yourself and others in the car. This will cover you and/or them in the event of injury, disability or death.

A lot of these cover options are bundled into one contract or product such as Comprehensive car insurance or Theft, Fire & Third-Party Cover. However, it is important to read through your contract and understand what is and is not included in the cover.

This was just a basic overview of the covers Car insurances in South Africa offer. However, this can differ from insurer to insurer. If you have questions, speak to your broker or advisor

car insurance in south Africa

What is an excess?

An insurance excess is the amount you will need to pay in the event of a claim. This often varies depending on the type of claim. For example, a windscreen claim often has a lower excess than a crash claim.

This amount can be higher or lower depending on your age, years of driving and or the area in which you were driving in.

The excess can offer be lowered or raised depending on how much you are paying in premium every month. Discover Insure for example offers its clients a lower excess option for a higher monthly premium.

Do I need Car Insurance in South Africa?

Legally, not at the moment in South Africa. But it is something most advisors recommend. The reason is, our cars are our transport to and from work, shops, schools and getting on with life. And without it, life can be difficult. And while car insurance in South Africa is not compulsory, it has saved many people a lot of money.

Imagine you hit a Ferrari and had to pay for R500 000 in damages. Would you be able to afford that? Probably not, which means you have a long road of paying it off plus potential legal battles and fees ahead of you. Experts say that this can be avoided with car insurance in South Africa.

Where to look for Car insurance Quotes in South Africa

Car insurance quotes in South Africa are relatively easy to find. From sites like Hippo that allow you to compare multiple companies’ insurance options to going directly to the insurance companies. But maybe there is a third option.

If you use an Insurance Broker or financial advisor, they can assist you in a number of ways often not offered by the others. Such as:

  1. Help you to understand the cover options.
  2. Assist you to understand the best cover for your needs.
  3. Compare cover options from different companies.
  4. Help you to check and comprehend the “fine print”.
  5. Assist you in finding the right price for you.
  6. Offer advice on your needs.
  7. You can streamline the process of getting covered.

As much as you may not need an Insurance Broker or Personal Financial Advisor, they can help make your life a little easier. They have studied and become qualified to assist you. These professionals know the company’s products from Hollard to Momentum and even OUTsurance. They will be able to advise you on the best cover for you at the right price.

If you are looking for a Financial Advisor or Broker, let us pass on your details to a registered financial professional who can make contact with you. Fill out the form below:

Car insurance can seem like a daunting task, but it doesn’t need to be that way. With the resources available online and the professionals available to assist you, you no longer have to deal with sleezy salesmen who just want to make a buck out of you. So, make sure you read up on your cover options and discuss with your broker what the best cover is for you. Then they can find it for you at the right price.

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Disclaimer: This article and website is based on a purely information-based content. None of our content should be read or viewed as advice of any kind. Read full disclaimer here.