Car insurance is something we all avoid because it is challenging to understand and often expensive. But I think we can all agree that it is worth it! As the cover if you get hit by a drunk driver or drive into that curb is a lifesaver to help not empty our savings, we worked so hard to build. And with so many types of car insurance, it can be confusing.
Now when you are taking out car insurance with a registered broker, you will probably hear things like comprehensive cover, 3rd party, fire and theft, or contents insurance. These are all big words that can seem confusing. Now we have put together a brief explanation of each of the common car insurance types in South Africa. However, each insurance cover varies slightly, and it is vital to discuss your cover with a professional first.
So here is a brief explanation:
3rd Party, Fire & Theft Car Insurance Cover
Third-Party, Fire and theft is often the cheapest type of cover you can get for your vehicle. It covers you in the event of a collision with someone else, covering their damage only. You will still need to cover your vehicle’s damage.
The cover also insures you in the event of Fire & Theft of your vehicle. But each insurance does limit on what they will pay out, so it is important to check.
Contents Car Insurance
What happens to your golf clubs or laptop if it gets broken during an accident? Well, if you have contents you could get paid out. This is for a limited amount and can sometimes have restrictions, but it is good to know that if you have stuff in your car, you are covered.
Comprehensive Car Insurance Cover
This is the cover most drivers have. It is often required when you finance a vehicle. This cover gives you Third Party, Fire & Theft, contents and even covers your own vehicle. This gives you a good piece of mind that you are covered if the worst case happens.
Who can Drive?
Depending on your Car insurance, you may have restrictions on who can drive your vehicle. This can be specific people or specific ages. This is important to note as if an unauthorised driver is driving your vehicle you are not covered, regardless of the circumstances.
Hopefully, this helps you understand a bit more so next time you see your insurance broker; you are better prepared. Car insurance can seem complicated and a big effort, but the effort will be worth the peace of mind you will get when you know you are covered. Now that you know the types of car insurance, you can start working with your broker to look what’s best for you!
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