We know that insurance can sometimes be tricky to understand, that’s why we’ve compiled these tips to explain what we mean by commonly-used phrases that you may see in your policy wording – and to help you to avoid some common pitfalls.
Insurance shouldn't leave you wondering what you're actually covered for. Whether you're protecting your car, home or the valuable items you take with you every day, understanding your policy can help you avoid unpleasant surprises when you need to claim.
Your Coversheet and policy wording tell you what is insured, the applicable limits and excesses, and the conditions and exclusions that apply. Knowing these details can make it easier to choose cover that suits your needs.
Insurance cover describes the risks, property or liabilities that an insurer agrees to protect, subject to the terms and conditions of your policy.
The important part is that not every insurance policy covers every possible loss. Your selected cover, insured values, excesses, limits, exclusions and policy conditions all help determine whether and how a valid claim will be settled.
That's why it's worth reading your Coversheet rather than simply knowing that you're “insured”.
Think about the items you regularly take outside your home: your phone, laptop, handbag, watch, sunglasses or jewellery.
Depending on your policy, portable possessions may need specific cover when they're away from your insured home.
At MiWay, this type of cover is available through MiMovables Insurance.
Portable possessions can generally be insured as specified or unspecified items, depending on the policy.
Unspecified items are everyday portable possessions that don't necessarily need to be individually listed. The policy's overall and per-item limits still apply.
Specified items are individually listed on your Coversheet, usually because they are valuable or require cover beyond the applicable unspecified-item limit.
For example, an expensive laptop, watch or piece of jewellery may need to be specified separately.
Check your Coversheet and policy wording to understand which items need to be specified and what limits apply.
Added custom wheels? Upgraded the sound system? Installed additional accessories?
Changes to your vehicle can affect your car insurance, particularly when they alter its value, use or risk profile.
Don't assume that every modification or accessory is automatically covered. Tell your insurer about material changes and check whether additional accessories need to be listed on your policy.
MiWay has a dedicated guide explaining this in more detail.
Find out why you should update your cover when customising your car
South African drivers generally encounter several levels of car insurance, with the exact benefits, limits and exclusions depending on the insurer and policy.
Comprehensive car insurance can cover selected accidental damage to your vehicle, theft or hijacking, fire, certain weather-related events and qualifying third-party liability.
Third-party, fire and theft cover generally covers qualifying damage you cause to another person's property, as well as specified losses involving your own vehicle from theft or fire. Accidental damage to your own car is generally not covered.
Third-party only cover generally protects you against qualifying liability for damage caused to another person's vehicle or property, but doesn't cover damage to your own vehicle.
Total-loss cover is designed for qualifying total-loss events, such as a vehicle being stolen and not recovered or being declared a write-off. The exact scope depends on the selected policy.
Always check the Coversheet and policy wording because product names, limits, excesses and exclusions can differ.
Comprehensive cover provides broader protection than third-party options because it can protect both your own insured vehicle and qualifying liability to other people.
However, “comprehensive” doesn't mean that absolutely everything is covered.
Exclusions, excesses, driver requirements, vehicle-use conditions and other policy terms still apply.
An excess is the amount you may need to contribute towards an approved claim.
Depending on your policy, standard, voluntary or additional excesses may apply. Choosing a higher voluntary excess may affect your premium, but it also means you need to be able to afford that contribution if you claim.
Check the excesses shown on your Coversheet before you need to make a claim.
The insured value of your vehicle can affect your premium and how a qualifying total-loss settlement is calculated.
Retail value generally reflects what a similar vehicle may sell for through a dealer.
Trade value is generally closer to what a motor dealer may pay for the vehicle.
Market value, in an insurance context, may be calculated using retail and trade values together with relevant vehicle information.
Some qualifying vehicles, including certain classic or collectable vehicles, may instead use an agreed or specially determined value.
Vehicle values can change over time. TransUnion notes that factors such as supply and demand, regional popularity and vehicle condition can affect valuations. Its consumer values are guides rather than insurance settlement figures.
MiWay's newer guide explains the different valuation options in more detail.
Insurance shouldn't be something you set up once and forget.
Review your policy when something important changes, such as:
A regular review helps ensure that the information your insurer has remains accurate and that your cover still matches your circumstances.
Private car insurance is not generally compulsory under South African law. However, driving without appropriate cover can leave you personally responsible for damage to your own vehicle and potentially damage caused to someone else's property. Miway's current 2026 guide provides a fuller explanation.
No. Comprehensive insurance provides broad protection, but limits, exclusions, excesses and policy conditions still apply. Always check your Coversheet and policy wording.
Don't automatically assume that your vehicle policy covers every personal possession inside your car. Portable belongings may require separate cover, such as MiMovables, and applicable limits and conditions may apply.
Yes, material modifications and accessories should be disclosed to your insurer so that you can establish whether your existing policy remains appropriate and whether anything needs to be separately listed.
Check the insured value shown on your Coversheet together with the valuation basis used by your policy. Depending on your cover, this may involve retail, market, trade or an agreed/special value.
Insurance is easier to understand when you know what to look for: what is covered, what isn't, what your property is insured for, what excess applies and what your responsibilities are.
Take a few minutes to review your Coversheet and policy wording. If your circumstances, belongings or vehicle have changed, it may also be time to review your cover.
Ready to check whether your cover still suits your needs?
