Whether you are driving in South Africa as a citizen or ex-pat resident, you must consider buying an auto insurance policy. Although not compulsory here, car insurance is an important protection to yourself against unexpected expenses. A lot of insurance companies offer different insurance coverage. Insurance policies insure your car; however, the driver’s name must be listed. Although you can add other names to the policy, you will have to pay a higher premium.
Kinds of Auto Insurance in South Africa
The following are the three major types of auto insurance you can pick from in South Africa. You can check out Miway to learn more about these types:
- Comprehensive car insurance. This coverage tends to be the most extensive and expensive. It covers damage, theft, and the cost to your car and others when involved in an accident you caused. Insurers vary in their policies, so check whether things like coverage abroad and breakdown assistance are included.
- Third-party insurance. This insurance does not cover damage to other people’s property. Also, it will not cover you when you drive your car outside of the country.
- Limited insurance. This coverage covers you for fire, theft, and hijacking. Also, it covers third-party claims. But, this does not cover your car’s damage when involved in a collision.
Costs and Excess
Apart from the kind of auto insurance you purchase in the country, your insurance premium costs are also based on some factors such as your car’s current value, your profile as a driver, where you live, how often you drive your car, the number of drivers your policy lists, and what you use your vehicle for. Also, your deductible or excess will impact the cost. This refers to the amount you need to pay towards claims you will make. Insurance providers have a compulsory excess; however, you can increase this to have a lower monthly premium. Also, installing a trucking system on your car will let you enjoy a discount from your provider.
Other Types of Auto Insurance Available in South Africa
The majority of companies in the country provide the three major types of auto insurance cited above. But, some offer extra standalone policies that can be bought for additional coverage. These include the following:
- Medical insurance. This coverage covers medical costs when you sustain an injury and require medical treatment after a car crash.
- Legal assistance. This covers legal expenses when a claim against you goes to court.
- Breakdown assistance. When your car breakdowns, this insurance covers costs like towing and replacement transport.