In South Africa there are three basic types of insurance cover for motor vehicles to choose from. These are Comprehensive, Third Party Fire and Theft and Third Party only.
Comprehensive Insurance covers the whole gamut of risks which your car is likely to be exposed to –whether moving or standing still. These risks include (1) losses incurred by car thieves and hijackers (2) accidental damage to your car as well as accidental damage to the property of a third party and (3) accidental death or injuries to third parties. The car radio or canopy are also included, as well as rain damage.
Comprehensive Insurance cover is the most expensive of them all and you would be well-advised to go with this type of insurance as a minimum option if you clock up a high mileage, or you drive an expensive car, or you still owe money on the car.
Third Party Fire and Theft
Third Party Fire and Theft provides cover for any damage you may cause to the other driver’s vehicle or the accidental death or injury to third parties involved in the same accident. You will be compensated if you lose your vehicle through theft or hijacking, as well as any damage caused by fire, lightning or explosions. The windscreen, car radio and canopy of your vehicle will also be covered.
Your car will not be covered against accidental damage. This is the second most expensive of the three car insurance options. This insurance would suit you if you clock up ‘average’ mileage, or you owe very little money on the car, and you can afford the premium.
Third Party Only
Third Party only will cover you in the case of damage you may cause to the vehicle of another person or an accidental death or injuries of third parties involved in the same accident. You have no cover under this insurance type against the loss of, or damage to your own vehicle. This is the cheapest of the three and you should consider this if your car is old, or you rarely drive, or you owe no money on your car