What makes third-party car insurance worth considering in 2021?

What is third-party car insurance? 2

Third-party car insurance is usually the cheapest of all car insurance products, with comprehensive car insurance being the most expensive. This product only covers accident damage to the third party and not your car, but some insurers have products covering your vehicle to a certain degree.

Third-party car insurance with growing cover 2

This car insurance product provides a growing cover for smaller accidents regarding your own car. Besides that, it provides third-party liability cover, and with some third-party insurance products, it may also cover you for hail damage cover.

What are the implications of not having third-party car insurance? 3

The answer is straightforward: a possible financial catastrophe. Third-party car insurance protects you from any claims made against you by a third party when you caused the accident. Let us look at the financial aspects of a car accident.

What does it mean financially should I have a car accident without any cover? 3

Most motorists who have third-party car insurance have older, paid-up cars of a lower value and who may not be able to afford the considerably higher premium of comprehensive car insurance. An average claim could potentially cost you between R20 000 and R30 000, but this amount could increase dramatically, especially if you crash into a new luxury car. The question to ask is ‘do I have the cash available to settle a third-party claim, never mind the costs to repair my car?’

What about the risk?

How significant is the risk of having a car accident in South Africa? That would be difficult to answer, but if the current driving state on South African roads is anything to go by, one could estimate the risk to be relatively high. Add to that the number of motorists driving with illegal drivers’ licenses and the risk increases.

Is it worth taking out third-party car insurance? 3

Based on the above, it appears to be worth it to protect your financial well-being with third-party car insurance. Interestingly, countries such as Zimbabwe and Mozambique require you to have third-party car insurance before entry.

Disclaimer

With car insurance being a complex matter, this article must be viewed as only information Should you want to purchase a car insurance product, please contact a certified financial advisor for professional advice.

Some car insurance is better than no car insurance, which applies even more so to South African motorists. Perhaps consider getting car insurance in 2021 that suits your needs and wallet?

Sources:

1. 1. Third Party Car Insurance
   2. Third Party Plus
   3. How avoiding third party car insurance could lead to financial disaster
   4. Driver’s licences: ‘One in three illegal’ due to scam