March 24, 2020
Perhaps you want to finance a new car for the first time and have been told to get comprehensive car insurance, which is compulsory if you're going to finance a new car in South Africa.1 What if your beloved and reliable first car is not new but over 15 years old? What if it is at risk of being stolen or hijacked? So, what is the difference between comprehensive car insurance and the other types of car insurance that you may have heard about to date?
Please do not consider this article as financial advice. Please seek financial advice from a certified financial adviser before you purchase car insurance.
Comprehensive car insurance is defined as car insurance that ‘comprehensively’ insures a vehicle, according to the South African Insurance Association (SAIA). This type of car insurance covers more than any other kind of cover, which could include vehicle theft, hijacking, vehicle write-off through accident, hail damage, fire damage, flood damage and more. Comprehensive protection also covers damage or loss that a third party has incurred when applicable.
South African motorists may have different needs than they require from car insurance to suit their wallets. Some motorists only require third-party car insurance while others want a comprehensive cover or customised car insurance.
This type of cover can protect insured motorists if their cars are lost due to an accidental write off, stolen, or if the vehicle is hijacked. Third-party cover is often included in this type of car insurance.
This type of car insurance is usually customisable, which includes a variety of benefits that may cover the loss of the vehicle as a result of theft or fire. There is an additional ‘third party’ benefit as well, which includes cover for damages to a third-party vehicle as a result of a motor accident.
Third-party cover is ideal for motorists who do not need the cover provided in the above types of car insurance. Third-party protection is included, which covers third parties’ damages in an accident. This cover may consist of additional benefits depending on the insurer.
A wide range of affordable car insurance products for all South African motorists is available with PMD. Innovative benefits are also available when you get car insurance with PMD. Discuss your car insurance requirements with your financial adviser to make sure that you get the cover you need that suits your budget as well. Enjoy benefits when you buy affordable car insurance with PMD. Whatever you decide, ensure that the car insurance you choose to get provides you with additional peace of mind.