Third party or comprehensive insurance?

Motor vehicles are without doubt one of life’s necessities rather than the luxury item that they used to be many decades ago. That is why car insurance is also a necessity, as it helps to prevent the car owner from having to pay potentially huge sums of money in the event of theft or damage. Most cars in South Africa are covered by third party insurance which covers fire and theft. If you want a more comprehensive insurance policy, there are many insurance companies out there.


(Photo credit: ‘Scratch’)

Third party insurance is fine if you have to stick to a budget; however, this type of cover is not going to cover you for the costs of damage caused by having a road traffic accident that was your fault. If you want to make sure that there are no hefty repair or compensation bills about to head your way, then you should opt for a comprehensive motor vehicle insurance policy.

Car insurance quotes can be obtained from many different insurance companies that specialize in providing motor vehicle insurance policies. Car insurance quotes are an estimate of the cost of covering your motor vehicle against loss and damage and is provided free of charge (if a company wants you to pay for an insurance quote, politely decline and move on) to the vehicle owner.

With everyone looking to save money due to the difficult global financial situation, a lot of people are looking to make substantial savings when the time comes to renew their motor vehicle insurance. That is why you need to compare as many quotes as you can, from as many different motor vehicle insurance companies as possible. That way you will have a clearer picture of who can offer you the best deal on your car insurance.

The best (and by far the easiest) way to compare multiple car insurance quotes, is to look on the internet. There are more and more companies that are dealing with their customers, exclusively online and this can be a great money saver. Because they are doing all of their business online they have less expenses and this means that they can offer better discounts on car insurance policies.

Car insurance is great as it helps to protect your car from unwanted damage or loss and this is especially true if your car is your only means of getting around. If you were to lose your car, then without adequate insurance, you may not be in a position to replace it.

Thanks to the internet, it is now easier than ever before to compare motor vehicle insurance quotes from a number of different motor vehicle insurance companies. With so many different companies out there vying for business, it is no wonder that the cost of motor vehicle insurance is fast becoming a better value for the money. This amount of competition can only be good for the consumer and is leading to an upsurge in the amount of discounted insurance policies that the average person can choose from.


Finding cheap car insurance is not as hard as you might think

English: Motor vehicle accident following a ve...

Motor vehicle accident following a vehicular pursuit (Photo credit: Wikipedia)

One of the worst errors of judgement that any driver can make when it comes to taking on a car insurance policy is to have a premium that costs a lot of money, only to discover a few days later that there is another policy that matches theirs but is much cheaper. Of course, in South Africa there are a large number of people still driving around without any kind of motor vehicle insurance. This is because, motor vehicle insurance is not mandatory in South Africa as it is in other countries around the world. Most people who are travelling around without adequate motor vehicle insurance give the explanation that the cost of the monthly or yearly premiums is too high. That can be true but on the other hand, having insurance can negate the need for costly repair bills when the worst happens and you have an accident.

There are many motor vehicle insurance companies out there who are now offering more reasonable rates for those who are looking to insure their car, but who are restricted by a tight budget. Thanks to the growing popularity of the World Wide Web, more and more insurance companies are now in a position to sell their cover online and this can also help to keep the cost of the monthly premiums down.

There are certain groups who are going to find that their insurance quotes are fairly high and these include, drivers under the age of 25 and those drivers who are deemed to be of poor standard. Both of those groups can expect to pay more for their monthly premiums than older drivers and those who have had very few or no accidents at all.

When it comes to cheap car insurance in South Africa, there are one or two things that you can do to lower the amount of money that you can expect to pay each month. For example, as with most other kinds of insurance, you will be expected to pay an “excess”. The excess is the amount of money that you will be expected to pay towards the cost of repairing your motor vehicle should you have an accident. Only when you have paid this excess will the insurance company then payout and cover the rest of the repair bill. By setting your excess to a higher amount when you first take out the car insurance policy, you will find that this lowers the amount you are expected to pay towards the premium each month.

Another way to reduce your monthly payments is to negotiate with your existing insurance provider if you already have one. If you have had an insurance policy for a long time with the same company and not made a claim, you are in a good position to negotiate a special reduced rate when your policy is up for renewal. Threatening to leave them for another company that can provide the same cover for less will usually spur your existing insurance company to match that offer in order to keep you as a customer.

Obtaining Cheap Car Insurance in South Africa

In these modern times and with the car now the main mode of transport for getting around South Africa there are more cars and motor vehicles on the roads of South Africa. The result of this is that collisions are becoming more prevalent. There are still a large number of the populace of South Africa who own motor vehicles but are not covered by motor vehicle insurance. That is why it is a good idea to cover your vehicle with some kind of motor vehicle insurance in case the worst case scenario happens and you and your vehicle are involved in an accident.

Looking south above Interstate 80, the Eastsho...

(Photo credit: Wikipedia)

Many people who do not have motor vehicle insurance for their car use the excuse that the monthly insurance premiums that they would have to pay, are beyond their means. With motor vehicle insurance not compulsory in South Africa, there are going to be a lot of uninsured drivers on the road and therefore the chances of being involved in an accident with an uninsured driver are quite high. When you have an accident in your vehicle and you do not have insurance, then you are going to have to pay for the entire bill to rectify the damages yourself.

However, if you have motor vehicle insurance on your car then you will not be liable to pay the full amount of the repairs. Acquiring cheap car insurance in South Africa is not as difficult or problematic as you might think and there are a number of companies out there who are willing to offer an insurance policy that is affordable for most people who are sticking to a budget.

When you are thinking about obtaining cheap car insurance then it is a good idea to do some research first in order to compare prices and levels of cover available. Therefore, making use of the internet is a great way to compare the cost of insurance premiums and levels of cover. There are many websites out there that will list quotes from many different companies on the same page, and this will make comparing quotes so much easier.

There are one or two ways in which to lower the monthly payments on your motor vehicle insurance. The first is to raise the amount of excess when you first take out the insurance cover. The excess is the amount of money you will be expected to shell out when you have the misfortune of having an accident. The insurance company will deduct the amount of the excess from the total cost of repairs and then pay the rest. For example, if your excess is 500 Rand and the cost of the repairs to your car come to 1500 Rand, and then the insurance company will pay 1000 Rand. Raising the amount of your excess will help to lower the amount you will be expected to pay for your premium each month.

With some research and effort you will be able to obtain cheap car insurance that will provide you with a level of cover that you need for a price you can afford.

Cheap fully comprehensive insurance cover for your car

There are a lot of uninsured motor vehicles on the roads of South Africa at the moment and this is for the reason that motor vehicle insurance is not mandatory in the Republic at the present time. Most uninsured drivers will state that they find motor vehicle insurance premiums are too costly and that they cannot afford to make the monthly payments. Therefore, a lot of drivers would rather take a gamble and hope that they do not have a serious car accident in the future, rather than spend a little bit of money each month for that added peace of mind that comes with knowing that you are fully insured. They would rather rely on the state’s Road Accident Fund that automatically gives them third party insurance.

St. Patrick's Day Collision  2 of 4

St. Patrick’s Day Collision 2 of 4 (Photo credit: 7mary3)

The problem with the third party insurance provided by the Road Accident Fund is that it will only cover a small amount of incidents that you may come across as a car owner. There is only one way to guarantee that you are fully covered against all possibilities and that is to obtain fully comprehensive cover from a specialist car insurance company.

Most uninsured drivers will say that finding cheap car insurance in South Africa is not an easy task and for that reason they are more than happy to take their chances and rely on the third party insurance provided by the Road Accident Fund. There are many companies out there who are currently offering great deals on fully comprehensive motor vehicle insurance. Searching online is a great way to locate cheap car insurance in South Africa and there are many websites out there that will do all the work for you, comparing prices and levels of cover and listing them all on one page.

Relying on the Road Accident Fund is a huge risk to take if you have the means to pay for fully comprehensive insurance, because not only is the amount of cover limited, if the accident is your fault, then you are still going to be subjected to litigation by the other party. This could then lead to you having to pay huge sums of money to the person with whom you collided, and if they have received injuries as a result of the collision then the cost is going to be even higher.

The only way to avoid this potential scenario is to take out a fully comprehensive motor vehicle insurance policy that will provide you with the peace of mind that comes with knowing that you are covered against all eventualities.

Finding cheap car insurance in South Africa is not as much of a chore as you might think. Whereas making a claim through the Road Accident Fund can be a long, tedious and not to mention complicated process, searching for an insurance company is as easy as looking on the internet.

With a little bit of time and patience you can easily find the right comprehensive insurance policy that will give you full cover at a price you can afford.