Commonly-asked insurance questions, answered

If you’re looking to buy a car, you should definitely consider getting insurance as well... However, there’s a lot to consider before choosing one that’s best suited for you. Perhaps you don’t know much about car insurance and you’re not sure about the dynamics around it.

Well, we’re here to help you figure everything out! We’ve answered some commonly-asked car insurance questions for you. 

Why do I need car insurance?

Car insurance is essential for several reasons. You may be the best driver in the world, but that doesn’t mean that others on the road are – car insurance can insure you against damages caused by them. In addition to that, having car insurance can protect you financially, should your car get stolen, written off or damaged by hailstorms or fire – and other unexpected incidents. 

What are the types of car insurance available?

There are various types of car insurance cover available in South Africa. They are "comprehensive" car insurance, "third-party, fire and theft" cover, "third-party only" cover and "total loss" cover. Here’s an explanation of what these really mean: 

  • “Comprehensive” car insurance covers theft, hijacking, and damage caused by accidents or weather conditions. It also offers coverage if you are responsible for an accident and need to pay for damages caused to another vehicle, as well as intentional damage to your vehicle. This option is the most extensive car insurance option available.
  • “Third party, fire and theft” cover will handle the damage costs if your car is damaged or lost due to theft or fire-related incidents. It also covers damage you may have caused to another person’s car during an accident. However, if you were to be involved in a car accident, then you would have to cover the repairs or replacement costs of your car on your own.
  • "Total loss" cover provides cover to clients for the total loss of their vehicles, only when the vehicle is declared a write-off or when the vehicle is stolen and not recovered, as well as limited third-party liability. Accidental damage that does not result in a total loss is not covered.

What car insurance option is recommended?

If you can afford it, “comprehensive” car insurance cover is recommended. If your car is financed (in other words, if you took out a loan in order to pay off your car in instalments), comprehensive car insurance is a requirement. 

What factors can affect my car insurance premiums?

There are a number of factors that can increase or decrease your car insurance premiums, such as where you park your car during the day and in the evening, how long you’ve had your driver’s licence and the type of car being insured, amongst others. 

Will the colour of my car affect my premiums?

The cost of the paint or exterior vehicle parts (e.g. a black bumper as opposed to a shimmery red bumper) may also influence the insurance premium. 

If there’s one thing we can all agree on, it’s that car insurance is important! Chat to your insurer to find an option that best suits your needs and live your way!  

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