
The South African car insurance industry is made up of three main types:
- Third party insurance
- Third party, fire and theft insurance
- Comprehensive insurance.
Although policies may differ from company to company, the three categories above are the most general options. Each of them serve specific needs, and may offer policy benefits like:
- Installation of a vehicle recovery system.
- Lifetime guarantee on all approved vehicle repair work.
- 24-hour roadside and medical assistance.
So what is the difference between the types of car insurance? Let’s have a look…
Third party insurance
This is usually the cheapest car insurance option available. It covers you against any damage that you may cause to someone else’s vehicle. It also covers the accidental death or injury to third parties involved in the same accident. It won’t however, cover you against loss or damage to your own vehicle that were caused by accidents, fire or theft.
Third party insurance is a good idea if:
- You’ve already paid off your vehicle
- The value of your car is relatively low, but you want to protect your finances against causing damage to someone else’s vehicle
- You don’t drive often
- You’re only looking for cheap car insurance.
If, for example, you’re buying a VW Polo Vivo 1.4, your estimated costs for third party car insurance could look something like this:
Male – 25 years old and driving for 7 years | Female – 25 years old and driving for 7 years | ||||||
New | Used (2 years old) | New | Used (2 years old) | ||||
Monthly premium | Excess | Monthly premium | Excess | Monthly premium | Excess | Monthly premium | Excess |
R110 to R170 | R1 700 to R8 000 | R110 to R160 | R1 700 to R8 000 | R110 to R160 | R1 700 to R8 000 | 106 to 155 | 1,700 to 8,000 |
Third party, fire and theft insurance.
This type of car insurance will cover you:
- For any damage that you cause to someone else’s vehicle
- For the accidental death or injuries to third parties involved in the same accident
- If your car was stolen, hijacked or damaged in an attempted theft
- For damages caused by fires, lightning or explosions.
Third party, fire and theft insurance is a good idea if:
- You still owe a minimum amount on your car
- You drive an average amount of kilometres.
Let’s say you’re buying a Toyota Corolla 1.3, your car insurance quotes could be:
Male – 25 years old and driving for 7 years | Female – 25 years old and driving for 7 years | ||||||
New | Used (2 years old) | New | Used (2 years old) | ||||
Monthly premium | Excess | Monthly premium | Excess | Monthly premium | Excess | Monthly premium | Excess |
R294 to R326 | R1 700 to R8 000 | R290 to R318 | R1 700 to R8 000 | R270 to R300 | R1 700 to R8 000 | R269 to R293 | R1 700 to R8 000 |
Comprehensive insurance
This type of car insurance covers a wide range of risks, and is highly recommended if you drive a new vehicle. Comprehensive insurance is usually the most expensive of the three types, and covers you against:
- Theft
- Accidental damage to your car
- Accidental damage to the vehicle or property of a third party
- Accidental death or injury to a third party
- Certain natural risks like hail damage.
Comprehensive insurance is a good idea if:
- You still owe money on your car
- Your car is expensive
- Your car is still relatively new
- You frequently drive a lot of kilometres.
Let’s have a look at car insurance quotes for comprehensive cover. The below example is based on someone who is buying a BMW 320:
Male – 25 years old and driving for 7 years | Female – 25 years old and driving for 7 years | ||||||
New | Used (2 years old) | New | Used (2 years old) | ||||
Monthly premium | Excess | Monthly premium | Excess | Monthly premium | Excess | Monthly premium | Excess |
R1 570 to R2 282 | R5 550 to R11 050 | R1 020 to R1 710 | R5 550 to R11 050 | R1 376 to R1 780 | R5 550 to R9 050 | R915 to R1 325 | R5 550 to R9 050 |