Fincheck recently launched a fresh vehicle insurance comparison page to help South Africans make better financial decisions when it comes to choosing a vehicle insurance partner. To help you make the most of your choice, we're going to talk about vehicle insurance and help you understand the vitals of this lifestyle product.
In this first post, we'll it short & sweet and define vehicle (or car) insurance and the basics types of car insurance available to each person.
Remember, if you're considering vehicle insurance, we can help you responsibly compare options on our vehicle insurance apply & compare page!
What is Vehicle Insurance?
Vehicle or car insurance, in its simplest form, is a contract where an insurance company takes financial responsibility for any losses the insured person or business incurs through damage to their car, damage to a third party or theft. Taking responsibility for these losses means that the cost is covered by the insurer. The specific types of losses that are covered by the insurance policy are specifically defined in the policy you take out. It will differ from insurer to insurer and policy to policy.
Types of damage and loss that you can be insured against, include:
- Car collisions or road accidents
- Damage caused by stationary objects (such as walls or trees)
- Damage from fire, floods, hail or other natural disasters
- Physical injury you suffer in the event of an accident
- Damage caused to another person’s (the third party’s) car by you
- Physical injury or death caused to another person (the third party) by you
Basic Types of Vehicle Insurance
Comprehensive Vehicle Insurance
This is the most extensive type of car insurance you can get. Comprehensive car insurance covers you for events such as theft, hijacking, loss or damage through accidents, fire and natural disasters (such as hail or floods). It also covers you in the case of claims made by third parties, if you were responsible for the damage caused to their vehicle. Due to its extensive cover, comprehensive car insurance is also the most expensive.
Third-Party, Fire, and Theft Insurance
The only difference between this type of car insurance and comprehensive car insurance is that it does not cover you for accidental damage to your car. This still covers you for theft, hijacking, fire and damage caused to a third party, but will not cover you for your own car’s repair or replacement cost if you are in a car accident or have an accident like driving into a wall.
This option is the cheapest form of car insurance in South Africa. This covers you for any damage you cause to a third party’s car, as well as any costs associated with accidental death or injury to third parties involved in the same accident. This does not cover you for any loss or damage caused to your own car, whether in an accident, theft, hijacking, fire or floods.
We know the options for vehicle insurance is vast and each person’s situation is different. So, we want to help you make the right choice. If you are looking for a vehicle insurance partner, we encourage you to make use of our vehicle insurance comparison page to apply & then compare the different partners and their basic options.
To your better financial future!