3rd Party Fire and Theft
Car Insurance can be rather confusing, there seems to be so many different products to choose from, how do you know which one is best for you? These days we are all looking for cheaper insurance but cheap is not always best. Knowledge is your best weapon as this will empower you to find the best car insurance for you, at the best price.

In South Africa we have three main categories of cover available - third party, limited liability (also known as third party, fire and theft) and comprehensive cover. Then you get add-on benefits like roadside assistance and specialized products such as mechanical breakdown insurance.

Third party car insurance policies provide the least protection and will only cover you for claims from others should you be the guilty party in the event of an accident. Limited liability, or third party, fire and theft insurance, have the added protection against the perils (risks) of theft and fire. However, you are still responsible to pay for the damage caused to your own car.

Comprehensive car insurance covers you for everything; it provides the most cover and will be the most expensive. Let’s look at third party, fire and theft as an alternative option. If you took out a car loan to finance your car you will need comprehensive car insurance, so this option will not be available for you.

If you are in the lucky position to have a fully paid-off car you could consider the option of third party, fire and theft. Remember though that this insurance covers exactly what the name says, if you are involved in an accident you will have cover should the third party lay a claim against you for his damage. But, you have no cover for accident damage to your own car. It makes sense therefore that you should only consider third party, fire and theft insurance as an option if you drive an old car with a very low market value.

Consider what you would have paid in the form of an excess if you had fully comprehensive cover, would it have been worth the higher premiums every month? Accident cover is very expensive as the risk the insurance company carries is much higher.

Why fire insurance for my car?
You may consider fire cover for your car a waste of money, have you seen how fast a car can burn out? Particularly if you have an old car, you need to consider fire insurance because older vehicles tend to have unreliable electrical circuits and overheat often. The cost of fire and theft car insurance is minimal if you take into account the risk it offsets.

Why theft car insurance?
In the new South Africa, every car on the road is at risk of being stolen. “My car is safe because it’s so old, nobody would want it.” In reality, older vehicles are targeted for hard-to-come-by spare parts.

There’s no harm in taking precautions to avoid either situation. The sad fact of the matter is that we’re living in a community where car thieves are bright, cunning and innovative adversaries to the insurance industry. As fast as new vehicle protection devices are developed, thieves are finding ways to circumvent them. Anti-theft devices are challenges to car thieves.

Top tips to keep your car save
1. Park your car in the safest place you can wherever you are; always park your car in the garage or in your driveway when at home; park in a well-lit area with lots of pedestrian traffic.

2. Use as many anti-theft devices as possible and use them even if you’re just popping into the café for a bottle of milk – not because any of them guarantee your car won’t be stolen but because they’ll slow a thief down. Once the alarm goes off, make sure the thief now has to snap the gear lock and then remove the immobilizer before he can make off with his prize.

3. Don’t leave cameras, sunglasses, clothing or other items in your car that will tempt a passing opportunist.

4. If you can afford it, vehicle tracking will afford you the most peace of mind.