Under third party insurance, fault does not lie with just one party. For instance, even if the fault mostly lies with you – making a lane change without checking that it is safe – the other driver may also be partly to blame if they did not take evasive action. In such cases, the insurer will apply the principles of Apportionment of Damages. This means the payout will be determined based on the percentage of fault attributed to each party, as determined by case law.

This covers damages to third parties and theft or fire damage to your own vehicle:

• Third-Party Liability: This component covers you for damages or injuries you cause to others in an accident.
• Fire and Theft: This part of the insurance covers your vehicle in case it’s stolen or damaged by fire.
• Benefits: It’s often cheaper than comprehensive insurance, making it a popular choice for those looking to save on premiums while still having some level of protection.
• Considerations: Make sure you understand the terms, such as excess amounts, coverage limits, and any exclusions that may apply.

1. Third-Party Liability Protection: Includes R500,000 third-party liability protection against damage you cause to other people’s cars or property.
2. Growing Cover for Accident Damage: Protects your own car by providing monthly growing cover for accident damage.
3. Affordability: Third-Party PLUS is Prime’s most affordable car insurance solution.
4. Peace of Mind: Ensures you are protected against significant financial liabilities in case of an accident involving third parties.

While it tends to be more affordable than comprehensive coverage options, car financiers do not accept it as it offers limited protection and no cover for the car.

1. Car Value:If you have a lower value vehicle, specially if it is paid off.
2. Car Age:If you drive an older vehicle
3. Low Driving Volume:You do not drive the car often or for long periods

In South Africa, you can buy third-party car insurance from a variety of sources, including:

1. Insurance Companies: Many major insurers in South Africa offer third-party car insurance policies.
2. Insurance Brokers: Insurance brokers can help you find and compare third-party insurance policies from multiple insurers. They provide personalized advice and can help you choose the best policy for your needs.
3. Online Insurance Platforms: Several online platforms allow you to compare and purchase third-party car insurance.
4. Banks: Some banks offer insurance products, including third-party car insurance, as part of their financial services. Check with your bank to see if they offer any insurance packages.

When buying third-party car insurance, it’s important to compare policies and prices to ensure you’re getting the coverage you need at a competitive rate.

• Responsibility: If you damage another person’s car or property in a motor car accident, you can potentially be held legally responsible to cover that other person’s damages if you are at fault. This is known as third-party liability.
• Protection: This benefit protects you by compensating the third-party for the repair or replacement costs of their damaged property.

1. Big Disasters: Large-scale public damage caused by events such as wars or riots. (This is covered separately under the SASRIA section of your policy.)
2. Driving Under Influence: If you are driving drunk or on drugs
3. Invalid Driver’s License: If your driver’s license has expired or is not valid
4. Traffic Law Violations: If you break traffic laws, such as running a red light or fleeing the scene of an accident you are involved in
5. Roadworthy: Driving an unroadworthy car
6. Fraudulent Claims: If you intentionally lie on your insurance claims and withhold important information.

Buying third-party car insurance typically involves a few key steps. Here’s are some straightforward tips to help you through the process:

1. Research Third-party car insurance providers: Look for insurance companies that offer third-party car insurance. You can look online, read reviews from trusted websites such as Hello Peter, and compare coverage options and premiums from different providers.
2. Understand the coverage: Third-party insurance usually covers damage to other people’s property and bodily injury in case of an accident where you’re at fault. It won’t cover your own vehicle or injuries. Make sure you understand what you are covered for in the event of an accident or collision.
3. Information gathering: Make sure you have your vehicle details ready, including the make, model, year, and Vehicle Identification Number (VIN). Personal information such as driving history will also be useful when getting a third-party car insurance quote.
4. Get quotes: Request quotes from multiple insurers. Make sure to compare the coverage limits and premiums from different providers and their plans so you are better informed.
5. Review policy terms: Carefully read the policy details to understand what is included and excluded. Ensure you are happy with the policy coverage before committing to a quote
6. Make your decision & purchase: Choose and purchase the policy that best fits your needs and budget. It is possible to do this online, over the phone or in person if required.

According to the South African Insurance Association (SAIA) about 65% of South African motorists are not insured. There are approx. one million road accidents reported annually in South Africa which indicates a high chance that a crash could occur with an uninsured driver. Car owners are not legally required to purchase car insurance, unless the car was purchased through a loan from the bank or other financial institution. For several years, the short-term insurance industry has pushed for the national implementation of compulsory third-party car insurance. However this has not yet occurred, but may change in future as car insurance regulations evolve in South Africa.

We have read how important it is to have at least some car insurance such as third-party cover, without which any accident can leave an uninsured motorist in a terrible financial state.

Prime sells affordable car insurance which you can purchase using their Online Insurance Purchase Platform. The entire process, which you can do from the comfort of your home or office at any time, is quick and easy. Should you encounter any problems, a call-back facility is available for you to use, as well as some audio and video materials.

Disclaimer

This article is intended for information only. Because car insurance is complex, please seek professional advice from a financial advisor when considering purchasing a car insurance product.