Most vehicles are incredibly expensive to replace, repair and maintain and with insurance, you will be able to rest assured that you are covered for almost any eventuality.
Depending on what form of insurance you take out, you will have a different level of cover. This makes buying a vehicle even more costly as you will have to take into account the cost of your monthly cover as well as the costs of the loan repayments and interest if you, like most South Africans, have had to take out a loan to finance your vehicle.
Why is car insurance important?
Car insurance is absolutely essential for several reasons. with the high rate of motor accidents happening on our country’s roads it is simply not worth the risk to drive a vehicle without some form of financial vehicle cover.
The second reason that vehicle insurance is essential is the cost of an accident. There is an incredibly high accident risk on South African roads. There are very few drivers who have never had some sort of accident, no matter how small and cheap to fix. If you accidentally bump into someone at a stop sign or even if you are involved in a serious pile up on the roads, you might be liable for the other car’s repairs as well as your own vehicles. It is unlikely that you will be able to afford any repairs or replacements out of your own pocket and so it is essential that you are covered for any damage you inflict on other vehicles.
In South Africa, there is also an unfortunately high level of theft and other crime. If your vehicle is stolen, has some part of it stolen or is damaged in an act of vandalism it is important that you are covered so that you will not have to pay for repairs or replacements out of your own pocket. If you have an accident, perhaps not involving any other vehicles, you will want to know that you are covered for your repairs, damage or replacements as necessary. To sum, it is impossible to predict what will happen on the roads, and being prepared for any eventuality is essential.
What are the different types of motor cover?
There are three main different types of car insurance. The following is a brief summary of each different kind.
Compulsory insurance covers the bare minimum of eventualities. This sort of insurance is generally for individuals who cannot afford any higher sort of insurance or who do not particularly want insurance on their vehicles. Because it is mandated by law that all vehicles are insured, this sort of insurance offers the bare minimum for individuals who do not want to break the law but who are not particularly interested in getting insurance. It covers any damage that you many inflict to the vehicles or property of others with your vehicle.
Third party insurance
Third party insurance is slightly more expensive and covers damage to other vehicles as well as damage to your own vehicle including fire and theft. It also covers replacements if necessary.
Comprehensive insurance is the fullest, best cover for your money as it covers almost any eventuality that could befall your vehicle in any situation. It is also the most expensive form of cover.