You’ve been looking forward to buying your new dream car – very exciting! Naturally, you want the best for your car, driving it carefully and servicing it regularly. But what about protecting yourself financially when travelling on the open road? Read on further and learn more about the benefits of comprehensive car insurance. 1,2,3
Is car insurance necessary?
Cars today are so expensive, with motorists committing to paying a large sum to own one. Car insurance aims to protect motorists financially. 1
What are the implications of driving without car insurance?
Imagine driving a brand-new luxury car without car insurance and then causing an accident. The responsibility would be on you to pay out of your pocket for damages incurred to the third party’s car. Also, since your new car is now damaged, you would have to repair it at your own expense. You can see how this could be a stressful financial situation. 1
Peace of mind
Car insurance gives you peace of mind, knowing you are financially safe, no matter what happens. It’s important to know that different policies provide different degrees of protection.1
What is meant by comprehensive car insurance?
The word ‘comprehensive’ refers to car insurance that covers your car as much as possible. For this reason, it is the most expensive cover you can buy. Comprehensive car insurance covers damage to both your car and the third party’s car, irrespective of whether you caused the accident. Let’s examine Prime South Africa’s comprehensive car insurance to see what it covers and learn about its benefits.1
Prime’s comprehensive car insurance
Prime provides this insurance to cover theft and hijacking, accident cover and write-off, and damage caused by natural disaster and natural fire. Included is third-party vehicle liability protection of up to R1 million per incident, while the policy covers your car for up to 100% of its retail value at the time of the incident. Other benefits are hail damage cover and 24-hour roadside assistance and towing. To help your bereaved family, should you die in an accident, this insurance plan provides free R10,000 accidental death cover. 2
By comparing comprehensive car insurance with third-party car insurance, you can get an idea of the difference between the two.
Third-party car insurance
This kind of car insurance typically covers the least risk and so it costs the least. It covers damage done to a third party’s car but not to your car. So, if you happen to cause an accident, under a typical Third-party car insurance policy, you would have to repair your car privately. If you happen to be in an accident caused by someone who has traditional third-party car insurance, the onus would be on the third party to repair your car. Remember that this may not happen if the third party is not insured.
Prime provides affordable Third-party PLUS car insurance
This car insurance product has a growing cover component, which contributes to the repair costs of accidents, theft and hijacking. It also extends to 100% of your car’s trade value. Third-party liability cover is another valuable benefit, with liability protection going up to R500,000 per incident. Finally, Prime have included hail damage cover, which protects your car up to R10,000 in the event of hail damage.3
Disclaimer
The article aims to remind you of the benefits of comprehensive car insurance. 1,2,3
If you require more information about comprehensive car insurance, contact us at Prime and experience our world-class client service. We have affordable car insurance in store for you, including comprehensive car insurance with fixed premiums* and reducing excess*. Our comprehensive car insurance and customised car insurance plans cover cars up to 15 years of age, but cars older than 15 years are covered by third-party PLUS car insurance . It’s important to note that whilst Prime is responsible for marketing and policy distribution, this non-life (short term) insurance policy is underwritten by Santam Structured Insurance Limited (Registration Number 1952/000436/06, FSP Number 1027). In other words, Santam Structured Insurance Limited is the non-life insurance company that provides your cover and pays your claims. Ts and Cs apply.
To be sure when purchasing a financial services product, consult a financial advisor for professional advice.
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