It goes without saying that every car on the road needs insurance – or does it? Many vehicle on South Africa’s roads are uninsured, leaving their owners open to huge expenses if an accident, theft, or hijacking happens to take place.
On the other hand, some motorists who are insured often have the wrong type of cover or are paying too much for insurance – here are some facts about motor vehicle insurance that will help you make better choices when you search for the right cover.
Insuring your vehicle – the basics
Insurance is a strange thing – it feels like a waste of money until you really need it one day. That may be the reason why so many people question the value of insuring their vehicles – but in South Africa, where the risk of theft, hijacking, and accidents is quite high, it’s essential.
Most car insurance companies offer a variety of packages, while others bundle their motor vehicle insurance into one policy. A typical motor vehicle insurance policy should cover you for:
- Accidents – towing costs and the cost of repairs (or a new vehicle if your car is a write-off).
- Theft – the cost of replacing a stolen or hijacked vehicle that isn’t recovered
- Third party insurance – any costs or damages caused to a third party if you are at fault in the accident.