Whether you realize it or not, owning a car means so much more than having a means of transportation. Having a car means having the freedom to go anywhere you want, whenever you want. Taking public transport in South Africa can be risky as you never know if you'll reach your destination on time. Additionally, public transport can be dangerous.
With the rate of hijacking, break-in, smash and grabs, freak weather incidents, and accidents, having a car in South Africa is increasingly risky! From replacing broken windows and stolen radios to fixing dents and scratches, the costs of making repairs can be outrageous. Most South Africans cannot afford to deal with the sudden financial repercussions of these unfortunate events.
Saving up to afford the necessary repairs can take weeks, if not months. And for many hardworking South Africans, this is not an option. There's no way to prevent these situations from happening, but there is a way to lessen the financial blow. Many popular insurance companies on the South African market offer car insurance, including 1st For Women, Budget Insurance, Dialdirect, MiWay and Momentum.
Naked Insurance
Old Mutual
MiWay
Momentum
Santam
Discovery
Outsurance
1st for Women
Auto General
Budget Insurance
King Price
With tens of car insurance companies on the market, finding the right insurer can seem time-consuming. After all, you'll have to make a list of insurance companies and gather your pertinent information. Then you'll have to contact each company to get a car insurance quote and compare quotes and terms. After this, you will need to find out how their claims process works, and then you can finally select an insurer that meets your needs.
Luckily, here at BudgetGist, we believe that information should be easily and freely available. That's why we pride ourselves on being South Africa's information hub for all things related to finance and money.
There are several different types of car insurance cover in South Africa. Cover options can vary between insurance companies and their policies. However, you can expect to find three main types of car insurance cover offered: third party only cover, third party, fire and theft cover, and comprehensive cover.
Third-party only cover usually is the cheapest out of all the options and, as the name suggests, only covers injuries and damages to third parties. However, if you are injured or your vehicle is damaged, you cannot file a claim.
This type of cover can be ideal for people with a limited budget or a lower value vehicle.
Third-party, fire and theft cover is a step above third party only cover. Here you will be covered against theft and hijacking, weather damage, fire damage, and injuries and damage to third parties. The only downside of third party, fire and theft cover is that you are usually not covered for accidental damage to your vehicle or personal injuries. Depending on the insurer, this can be a good option for people who cannot afford comprehensive cover but need more coverage than third party only cover.
Comprehensive cover encompasses all of the above types of car insurance cover, so naturally, comprehensive cover is often the most expensive type of car insurance. Your insurer will cover you against theft and hijacking, weather damage, fire damage, third party expenses, as well as accidental damage. If you are in an accident, this is the type of cover that will pay out the most, as it covers both third party and personal injuries and damages to vehicles.
Car insurance coverage may vary depending on the individual, their potential risk, age and location and other factors. However, you should have a general idea of the type of coverage you want before deciding on your insurer.
While the claims process may vary according to your insurance company and type of cover, here is a general idea of how the claims process works!
Before filing a claim, assess whether your insurance policy covers the damages. What type of cover do you have; is it comprehensive, third party only or third party, fire and theft cover? If you believe that you have reasonable grounds to make a claim, you can proceed with contacting your insurer.
You may want to make a note of all the relevant information you will need before hopping on a call. Being prepared can make the process easier and help you stay calm. Your insurer will likely need your policy number, the date and time of the incident, and the names, contact information, driver's license and license plate numbers of you and the third parties involved.
Following this, you will likely need to complete a claims form. This may involve submitting photographs, letters from doctors or mechanics to verify bodily injuries or damages to your vehicle, and quotes of medical or repair bills.
Your insurer will guide you on which businesses and tradesmen in your area are covered by them, such as mechanics and panel beaters, hardware or car supply stores etc.
You are required to report accidents, thefts, and hijackings to your local police station. This is true even if no serious bodily harm occurred. Be sure to take note of the case number and hold on to important paperwork, such as copies of the accident report forms. Your insurance company will need the information of this incident report when filing a claim.
Your insurer will gather the information from your claims forms and any police reports before processing your claim and approving an amount for payout. The road to approval can seem lengthy, and you may find yourself tempted to begin repairs without waiting for your insurer to approve the claim. Try to refrain from this as your insurer may not pay out the full amount of the claim, and you will need to budget for out of pocket costs.
Knowing how to claim from your insurance company is vital. There are likely specific procedures that you need to follow for your claim to be processed and approved. In the event of emergencies, trying to find information on your claims process by fishing out your contract, dealing with call centre consultants or using the internet can be overwhelming and time-consuming.
You can combat this by having your insurance broker outline the claims process in a way that you can understand (lessen the technical jargon and try to use conversational English). Make notes or create a step by step list of what you need to do and the documents you require. You can keep this list on your phone or safely with the rest of your important car documents.
There are three main types of car insurance: comprehensive cover, third party only cover, and third party, fire and theft cover. The type of cover you choose should be determined by your personal needs. This can mean assessing your affordability, the likelihood of disasters and claims, and the value of your vehicle.
The length of the claims process can depend on your type of cover and your insurer. Before beginning to make a claim, gather the information you will need. This includes taking photographs of the damage, speaking to the third parties involved to get their personal information and filing any relevant police reports.
To make your car insurance premium really worth it, be sure to do your research before settling on a car insurance policy. Make use of educational websites with handy comparative tools, like BudgetGist, to get an idea of how much you should be paying on your car insurance. Additionally, you should remember that your age and previous incidents can play a role in your premiums.
If you are under the age of 25, car insurance can be more costly as you are likely an inexperienced driver. This means you pose a bigger risk in terms of accidental damage and liability for third party costs in accidents. Don't let this deter you from getting a cover for your car! The best course of action is to compare quotes to get the lowest premium with the highest possible cover.
Owning a car is not cheap, there are many costs involved: car loan premiums, maintenance costs, petrol, car insurance premiums. With the rising costs of living, paying a car insurance premium every month can feel like an unnecessary expense.
However, a car is a necessary convenience for many South Africans. From making large grocery purchases to dropping your kids off at school safely, owning a car makes life easier. Having cover for your car gives you peace of mind. Whether it be theft and hijacking or a freak accident, your insurance policy can save you from bearing the brunt of the financial burden.
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