Home Finance Insurance Car insurance in South Africa
Last update on August 12, 2020

If you plan on buying a car in South Africa, there three different kinds of car insurance in South Africa.

If you plan on driving in South Africa, there are three different kinds of car insurance you can choose from.

Comprehensive car insurance

This is the most expensive coverage. If you have financing for your vehicle, the bank will insist on comprehensive coverage. This policy, as the name implies, provides comprehensive cover against fire, theft, collision, damage and hijacking. Comprehensive cover will also cover you from third-party claims.

Limited car insurance

Limited cover is somewhat cheaper than comprehensive and covers you for theft, fire and hijacking. It also covers you against third-party claims. However, you don’t have coverage for your vehicle’s damage in the event of a collision.

Third-party car insurance

Cheapest of the lot, third-party will only cover damage done to other people’s property. This is often not a very wise choice except for old vehicles, however.

Insurers have recently introduced pay-as-you-go insurance options for drivers who do not travel much. In fact, you can get comprehensive insurance on this plan at a much lower rate. The average distance you drive each month determines the cost.

Submitting a claim

If you get into an accident and need to submit a claim, do it as soon as possible. Some insurers have a window that you must claim within; the same also applies for reporting the incident to the police. Payouts on the claims vary depending on the claim you are submitting for. In general, the insurance companies deal directly with the dealership. The excess must be settled by you in order for the new or repaired vehicle to be released.

Johan Danies / Articlesbase / Expatica