This insurance cover option is one of the three types of ‘stand alone’ third party insurances available to motorists in South Africa, and covers a broad range of damages and losses. If you are in the fortunate position to have a fully paid-off car you could consider this as the most viable option, as in the event of a collision, no cover will be provided for damages to your own vehicle.

What does it Cover?

If you are involved in an accident you will have cover, should the third party lay a claim against you for his damage. Due to the fact that you have no cover for accident damage to your own car, it makes sense that you should only consider 3rd party, fire and theft insurance if you drive an old car with a very low market value or have no outstanding payments on the vehicle.

The other components of this insurance plan will basically provide you with cover in the event of your vehicle being damaged by fire or if it is exposed to theft. Thus, nearly every possible risk is catered for which can significantly reduce your financial burden should an unexpected accident occur.

• Fire Insurance

Some may think that fire cover for their car is a waste of money, but even the most unlikely of accidents could happen to any driver at any time. No car is completely accident-proof and if frequently driven, will burn out at some point.

Older cars in particular are likely to burn out quickly, given their unreliable electrical circuits and their tendency to overheat on a more regular basis. Ultimately the expense of taking out fire insurance is worthwhile compared with the costs that could be incurred by the risk of a fire-related accident.

• Theft Insurance

Every South African knows that the country’s crime rate leaves much to be desired, and that people need to take whatever precautions necessary to protect their property. Thus, every car on the road is at risk of being stolen, even older cars, which are primary targets for syndicates that trade with outdated spare parts.

The reality is that we live in a society where car thieves are often a step ahead of us, and will find ways and means of getting around anti-theft devices, if they are determined to steal your vehicle. The extra insurance cover will make theft less of a worry for you, and is bound to come in handy sooner or later.

Added Benefits

Besides providing cover for third party, fire and theft specifically, this type of car insurance usually also covers towing to and storage at the nearest repair centre – which is subject to authorization from the insurance company – as well as vehicle windscreen and canopy insurance as optional cover areas. Furthermore, if you select the benefit that offers a car rental, and your claim is recognized as valid, you will have the convenient option of using a rental car while your own vehicle is being repaired.

Weighing up the Options

The other name for this insurance option, non-comprehensive insurance, indicates that it doesn’t include the entire spectrum of risk protection that you would be offered in the case of comprehensive cover. However, it is a worthwhile option for anyone contemplating a third party cover option.

Third party, fire and theft caters to a particular set of needs and generally ranks as the second most expensive category of car insurance. While reviewing the different categories, you should be sure to fully understand the limits and conditions for coverage, your liability in the case of an accident, and the ins and out of the policy you choose.