November 24, 2020
It’s no secret that everyone in South Africa has been impacted financially in one way or another due to the pandemic in 2020. It may make sense that every cent spent by households is used wisely. If you have a budget car or would like to buy one, read on and discover what could be the best car insurance for your needs.
Budget cars are the most affordable type of personal vehicles on the market. These cars may be brand new with some of the latest technology. Budget cars may also be quite old and have lost some of their market value. However, they still get you from A to B.
It all depends on the amount you want to spend and on the condition of your car. The rule in car insurance is simple – the more cover you want, the higher your premium will be.
There are generally 3 types of car insurance.
This is the cheapest type of car insurance, where the third party’s vehicle (the car you crash into) is covered for any damage or loss. Unfortunately, your car is often not covered. This is the best insurance option for those who really can’t afford to pay a high premium. The enormous advantage of third-party car insurance is that you are covered for third-party damage and loss. Imagine crashing into a brand-new Mercedes Benz, resulting in R80,000 worth of damage. How will you ever pay that off? What about a possible lawsuit that could follow? There may also be a growing cover component that covers damage to your vehicle depending on the car insurance company.
This is a notch higher from the basic third-party car insurance. The third party is covered for damages to his/her car, as well as loss, just like the third-party car insurance. The extra benefit for this specific cover is that your car is covered for fire and theft too. Thus, the overall cover will usually increase the premium higher than the third-party car insurance premium. At least your own car is partially protected this time.
This type of car insurance is usually the priciest of all three. However, as the name says, the insurance covers the most out of all of the types of car insurance. Your car will be covered for most motoring-related risks, as well as damage and loss to the third party’s car with comprehensive car insurance. Comprehensive car insurance is a must if you plan on financing a new vehicle.
Everything may depend on how much you are willing to spend on a monthly premium and how much car insurance cover you need. However, at least you have the information at hand to make an informed decision. Why not discuss your situation with PMD and find out more about their affordable car insurance products, which come with unique benefits like fixed premiums and a reduce to zero excess*? T’s & C’s apply.
This article must only be viewed as pure information; seeing car insurance is complicated. If you are considering purchasing a car insurance product, please contact a certified, financial advisor who will be able to guide you with professional advice.