What is comprehensive car insurance? We explore what comprehensive car insurance is and some of the fundamental benefits of having comprehensive insurance cover in 2020.
What is different about 2020 when it comes to comprehensive car insurance? Most importantly, it could be that South African’s personal finances are more constrained. So motorists might be looking for better deals, and more value from their insurance.
Disclaimer
Please seek advice from a certified financial adviser regarding buying car insurance. Please do not consider this article as financial advice.
What is comprehensive car insurance?1
The word ‘comprehensive’ means ‘all-inclusive’ or ‘broad’ etc. So, comprehensive car insurance is the most inclusive type of car insurance cover available, which includes cover for the broadest range of motoring-related risks.
Potential benefits of having comprehensive car insurance cover1,2
In South Africa, comprehensive car insurance may cover motorists such as vehicle theft, vehicle hijacking, damage or loss of your vehicle caused by accidents, fire and floods. It also covers losses by third parties (e.g. damage to other cars in an accident that you caused). There may be additional benefits and several exclusions as well.
Please remember to carefully read all policy documentation to be fully aware of what your car insurance plan covers and what it doesn’t cover.
Let’s expand upon the potential benefits of having comprehensive car insurance.
- To finance a vehicle purchase
Comprehensive car insurance is a requirement if you plan on financing your next car purchase or if you are still paying it off.
- General comprehensive cover benefits
Cover for accidentally writing off your car, accidental damage cover, natural fire damage, disaster damage, car theft and hijacking are included.
- Car Rental Reimbursement benefit
You could require a rental car while your vehicle’s accident damage is repaired. This could be costly if you are not covered for this service.
- Third-party liability cover benefit
Did you cause a car accident and did you damage another car as well? This is when a third-party cover benefit pays out for the repair of the other car (third party) that was damaged in the accident that you caused. There is a limit, albeit a high limit to what your insurance company will pay to the relevant third party.
- Full retail value cover benefit
Full retail value cover could provide you with a pay out of your car’s full retail value if your car is accidentally written off. This benefit will help you afford to buy a replacement for the vehicle that you accidentally wrote off.
What is a vehicle write off? In short, a vehicle that is written off is not financially viable to repair compared to what the vehicle is worth. So, a vehicle may be a write off if the accidental damage exceeds what the vehicle is worth.
- Credit shortfall benefit
This benefit could help if you are still paying off your car when it is accidentally written off because it will pay out the outstanding amount that you owe on your written-off car.
- Glass cover benefit
Vehicles’ windscreens are regularly damaged by debris like stones that become airborne on the road. Cover for the repair of your windscreen is highly convenient.
- Hail damage cover benefit
South Africans, especially those that live in Gauteng are no strangers to hailstorms. Hail damage cover can save you from costly repair bills if you find yourself driving in a hailstorm or a hailstorm precipitates over your parked car.
- Roadside assistance and towing benefits
Your insurer will assist you with your car if your car breaks down and tow it to be repaired if needed.
- Accidental death cover benefit
This benefit may pay out a specific amount to the car insurance policyholder’s beneficiary should the policy holder not survive a car accident.
- Extra drivers are covered
It could be convenient to have your car insurance cover your car even if other licensed drivers were to drive it.
Research to find the best deal on comprehensive car insurance
What is the best comprehensive car insurance in South Africa? The answer to this question depends on several factors such what you need from your car insurance, the cost of the monthly insurance premiums, excess payments and the benefits that insurers offer.
Do you want to get comprehensive car insurance for your car? Affordable comprehensive car insurance with useful, unique benefits like fixed premiums* if you don’t claim and a reduce-to-zero excess* is available with Prime South Africa. *T and Cs apply.
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