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Basic Car Insurance: What Every Driver Should Know

Writer's picture: Editorial StaffEditorial Staff

Did you know that the Department of Transport’s Road Traffic Management Corporation (RTMC) estimates that about 30% of drivers on South African roads got their licences through fraudulent means?


It's not a very comforting thought when you’re taking your prized (and expensive) wheels out on the road. Plus, only about a third of people have car insurance. This means that most car owners carry huge financial risks when they’re out on the roads. 

While many drivers choose not to get car insurance due to its price, you can opt for basic car insurance as a more affordable option.


However, it’s important to know what that means in terms of the cover you get. Below, we look at how car insurance protects your wallet when things go wrong. 


Basic Car Insurance: What Every Driver Should Know

What Is Basic Car Insurance?


Basic car insurance is the most straightforward form of coverage available. In South Africa, this typically refers to third-party-only insurance. It covers damages you cause to other people’s property or vehicles in an accident. However, it doesn’t protect your own vehicle.


Types of Basic Car Insurance in South Africa


  1. Third-Party Only:

    • Covers damage to others’ property or injury to third parties.

    • Affordable but offers limited protection.

  2. Third-Party, Fire, and Theft:

    • Includes third-party cover.

    • Adds protection against theft and fire damage to your vehicle.


Why Basic Cover May Not Be Enough


While basic car insurance is affordable, it may leave you exposed to high repair or replacement costs for your vehicle. This is where comprehensive insurance and add-ons become valuable.


What Are Add-Ons?


Add-ons are optional extras you can include in your car insurance policy (whether it’s basic or comprehensive) to enhance your cover. They provide tailored protection for specific risks or needs. They’re popular in South Africa because of our potholes, high accident rates and risk of theft.


Common Add-Ons in South Africa:


  1. Roadside assistance:

    • Offers help during breakdowns, such as towing or fuel delivery.

    • Ideal for long-distance drivers or those in rural areas.

  2. Car hire cover:

    • Provides a temporary vehicle if your car is being repaired.

    • Useful for those who rely on their vehicle daily.

  3. Tyre and rim cover:

    • Protects against damage to tyres and rims caused by potholes.

    • A practical choice given South Africa’s pothole problems.

  4. Excess waiver:

    • Reduces or eliminates the amount you pay when claiming.

    • Popular among drivers seeking more predictable costs.


How to Choose the Right Insurance


  1. Assess your needs:

    • Consider the value of your car and your driving habits.

    • Decide whether the basic cover is enough or if you need add-ons.

  2. Compare policies:

    • Get quotes from multiple providers to find the best deal.

    • Check what is included in the basic policy and the cost of add-ons.

  3. Understand the terms:

    • Read the fine print to avoid surprises when claiming.

    • Ensure you know the exclusions and excess fees.


Benefits of Comprehensive Cover with Add-Ons


Comprehensive insurance, combined with the right add-ons, gives you peace of mind as a driver. It protects against accidents, theft, natural disasters, and more. Given South Africa’s high crime rates and frequent road accidents, this level of coverage can save you a huge amount of financial stress.


Final Thoughts


Basic car insurance offers a good starting point for financial protection. However, to address the unique risks faced by South African drivers, consider enhancing your policy with add-ons. Whether you want roadside assistance or protection against pothole damage, the right combination of cover ensures you’re prepared for life’s uncertainties - compare types of car insurance and decide which one makes the most sense to you!


By taking the time to understand your options and tailor your insurance, you’ll drive with confidence, knowing you’re covered no matter what comes your way.



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