3rd Party Car Insurance
Driving on South African roads, enjoying the beautiful countryside, is a wonderful privilege we all enjoy. Driving in peak hour traffic, facing the risk of accidents, hijacking, road rage…well that’s another story. To enjoy your driving experience you need peace of mind and for that you need car insurance.

In South Africa car insurance is not enforced by law. If you buy a financed car you will be required to take out comprehensive car insurance as the insurance company needs confirmation that the asset they are financing is sufficiently covered against risk such as theft and total damage. They will require proof of comprehensive insurance before you can drive away in your new car.

Comprehensive insurance insures you against third party claims, fire and theft, physical damage to your vehicle and natural (or not so natural) disasters, e.g., hail or war. This type of insurance is the most expensive as it provides you with the widest coverage.

The next level of car insurance, one rung down the ladder, is limited liability insurance, also called third party, fire and theft. On the bottom rung of the car insurance ladder is third party car insurance. Third party insurance is the cheapest car insurance available on the market and offer you limited insurance cover, but its cover you simply can’t drive without.

Third party cover
Although the Road Accident Fund covers car accident victims in the event of an accident caused by someone who isn’t insured, it does not cover damage to the vehicles involved in the accident. If you drive into a bright red imported Audi and you don’t have third party cover, you will be liable to pay for the damage to, or replacement of the Audi! If that does not scare you, imagine a multi-car pile-up—you will be financially ruined for life.

If you decide to take out third party insurance only you will be covered for claims from third parties should you be the guilty party in case of an accident. But remember, you have no cover for yourself—your injuries or damage to your car. You also have no cover for perils (risks) such as fire, theft, hijacking, hail, storm, vandalism, or any other risk you can think of.

To bear in mind before you sign on the dotted line
1· Before opting for third party insurance only, make sure that this is really what you want, for instance, if you have an old vehicle that really is not worth insuring. If you drive an ancient Beetle and you’ve calculated you would basically cover the market value of the car in a year’s worth of comprehensive premiums, then third party cover should be sufficient for you. On the other hand, if your vehicle has been featured in Car magazine, it’s probably a good idea to make sure you’ve covered all risks.

2· With third party insurance you will still be responsible to pay excess; however, the higher your excess, the lower your premiums will be.

3· Your schedule (outline of agreement in your policy) will state the maximum amount your insurer will pay for injuries and whether accessories, e.g., sound systems, are covered.

Exclusions
Exclusions vary from insurer to insurer but a typical third party only policy usually excludes the following:

1· A car that is not roadworthy.
2· Unauthorised use of the car.
3· A car used to earn an income.
4· Accidents that took place outside South African borders.
5· Where a car was used in illegal activities.
6· Losses and damage already covered under SASRIA.
7· The driver was found guilty of driving under the influence of alcohol, drugs or medication.
8· Driving without a valid driver’s license.

Weigh up your options carefully when choosing insurance and protect yourself against claims.