We may be living in challenging times in 2020, but it is important to consider all of your options and read the fine print when it comes to buying car insurance, not only if it is affordable or not. Choosing car insurance can sometimes be so confusing if you do not understand all the different types of car insurance that you can get. Most motorists are unaware of how car insurance works and what it covers.
Comprehensive car insurance is the highest level of insurance a motorist can get. Other types of car insurance may include third-party fire and theft and Third-party only insurance. But what does all this terminology mean?
What makes comprehensive car insurance better than third-party?
Third-party car insurance cover is usually the lowest tier of cover you can get. Third-party cover only protects the damage inflicted on the other person’s car and not yours. You will be responsible for covering the cost of the damage to your own vehicle.
Third-party fire and theft car insurance may also be referred to as third-party car insurance in some cases but will also cover your car if it were to be stolen or if your car catches fire.
Comprehensive car insurance will cover the damage to your car and the third-party vehicle involved in the accident.
Why could comprehensive car insurance be a better choice?
Comprehensive car insurance allows you to claim from it if you were the motorist that caused the accident. You are also entitled to claim even if you can’t prove whose fault it was. In many cases, cars get damaged in parking lots while you are off to the shops but have no proof of what exactly happened.
If you do not have comprehensive car insurance, you run the risk of having to take responsibility for repairing your own car or even worse, needing to replace it because it was written off.
With comprehensive car insurance, you have peace of mind knowing that your car is covered when it comes to things that are out of your control and can be very costly at the end of the day. You would only have to pay voluntary or compulsory excess on your insurance.
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There are other benefits too, such as if you are financing a car purchase for which comprehensive car insurance is required. The list of potential benefits continues depending on the insurer.
Would comprehensive car insurance be more expensive?
Most people would be guilty of thinking that comprehensive car insurance is more expensive than third-party and third-party fire and theft insurance, but this is sometimes not the case. That is why it is essential to compare different policies with one another by getting a number of car insurance quotes.
In doing so, you might be pleasantly surprised that comprehensive car insurance might cost just as much as third-party car insurance. This helps you prevent compromising on the best cover to save a few extra Rands.
But how can this be possible? A lot of high-risk drivers opt for third-party cover to try and save on insurance costs. This, in return, backfires on these drivers as the statistics on high claim volumes on third-party could increase costs. So, it is definitely worth the time in checking all your options when it comes to different covers, especially comprehensive insurance.
When could comprehensive cover fall short?
Even though comprehensive cover is the fullest form of car insurance, there are still some instances where it could fall short. It is imperative to go through your policy and make sure you understand what your insurance covers and if there are any shortfalls.
There are a few areas that they may not cover and could be an add-on to your policy. These are the following:
- Courtesy car: while many car insurers will cover a courtesy car when your vehicle is in for repairs or has been written off, some won’t.
- Breakdown cover: this will come in as an optional extra with most insurers. So, make sure it is an option, or it might be a good idea to understand what the cost of the towing vehicle will be.
- Legal costs: it will not be the insurer’s responsibility to cover the legal cost if there were to be a legal dispute between parties.
What other ways can you save on car insurance?
Cheap car insurance isn’t always very economical as there might be some other hidden costs that you will not be aware of before you sign up. Some of these costs could be very high excess fees or you would have to take full responsibility in repairing yours and the third-parties car, as the “cheap” insurance provides the minimum level of cover.
Are you looking for affordable, fully comprehensive car insurance with unique benefits such as premiums that don’t increase* and a reduce to zero excess*? Perhaps consider getting comprehensive car insurance with Prime South Africa. T and Cs apply.
Disclaimer
Please consult a certified financial advisor before you purchase any car insurance products. This article is for informational purposes only.
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