Owning a car comes with a number of responsibilities. One of them is insurance. Insuring your car is essential, no matter which way you look at it.
Why is car insurance necessary?
Car insurance covers you if you are responsible for an accident or if your vehicle is stolen or destroyed. It also provides cover if your vehicle injures another person or damages their property.
Driving in the roads presents a number of risks, such as pothole damage, accidents, theft and hijacking. It’s for this reason that today’s car insurance policies can be customised to suit your individual requirements.
The main types of car insurance include:
- Comprehensive car insurance
- Third Party, Fire and Theft car insurance
- Third Party Only car insurance
- Pay as you Drive car insurance
How to insure a paid off car at an affordable price:
If you have a car that you are financing through a financial institution, you are likely to be required to get comprehensive insurance cover for the car. This type of insurance typically provides cover for all eventualities.
If you are looking to insure a paid off car ate an affordable price, your best bet is likely to be Third Party Only cover.
Third Party car insurance is a low-cost option that only covers the accidental damage you may cause to another vehicle. It’s the most suitable type of cover if you don’t drive your car very often or very far.
In South Africa, 35% of drivers who do pay car insurance are subsidising the rest of drivers, which makes car insurance costs more expensive. This is why there have been calls for Third Party Car insurance to become mandatory in South Africa. This would reduce insurance costs significantly.
Third Party car insurance offers a basic and more affordable form of cover that covers the damages that you may cause to another vehicle in the event of an accident.