Selecting the appropriate car insurance option is a delicate process, which is why you should do the necessary homework to assess what elements to consider. The value of your car is a good starting point and may very well influence the type of insurance you ultimately settle on.

For instance, if you happen to drive an ancient vehicle that has seen better days, you may feel that the car isn’t worth rescuing if written off, and thus the cover provided by 3rd party insurance is sufficient. As the minimal recommended car insurance policy out there, it covers only the basics and is ideal for someone who doesn’t have a lot of disposable cash on hand.

A Necessity

With all the hazards on South Africa’s roads, it is hardly surprising that every motorist is advised to have third party car insurance, at the very least. Even though it doesn’t insure your own car against damages during an accident, it covers loss or damage to any third party involving their property or any bodily injuries, as a result of the driver’s negligence.

According to the South African Insurance Association (SAIA) as many as 65% of SA motorists are not insured, which leaves people in serious financial trouble when accidents occur. SAIA presents two major reasons why every driver should have 3rd party insurance, if not further cover:

• There could be astronomical financial implications if you are found responsible for a collision, and are required to cover the costs of the other vehicle’s damages.
• In the event that you are involved in an accident for which you are not to blame, and the other driver isn’t insured, it is unlikely that you will be able to recover the costs.

Either way there is a good chance that you will lose out if there is an accident that you are involved in or responsible for. 3rd party insurance might not cover a range of damages or losses, but at least you can rest assured that your costs will be significantly reduced because you won’t have to pay for the other vehicle’s damages.

Instant Peace of Mind

If you are involved in a motor vehicle collision, and you are at fault, you will not only have your own car’s damage to contend with but will be accountable for the damage to the other vehicle, as well as any injuries sustained by those traveling in the car. This kind of insurance cover will at least put you at ease that any claims made by a third party will be covered and catered for, and you will not need to worry about being financially liable.

Other interesting points to keep in mind about this insurance option are:

• It isn’t solely restricted to motor vehicles.
• In some parts of the world, such as the UK, this is the minimum level of insurance cover require by law.
• Many insurance companies won’t let you drive somebody else’s car if you only have third party insurance.
• Any legal costs incurred during the accident or collision will also be covered
• This type of insurance is compulsory for anyone travelling to Zimbabwe or Mozambique – it is advised that you pre-purchase the necessary insurance before you reach the border post and have to deal with various delays.
• The majority of insurance complaints related to motor vehicles revolve around third party insurance. The difficulty usually involves the follow-up procedures when making a claim, as the insurance investigator’s checks on claims has become exceedingly strict, and people often get accused of falsifying their claims.