There are many clauses used in car insurance policies and it is very important that you make sure you read and understand the full meaning of every such clause. The most important clauses to read in car insurance are probably not what is included in your cover, but what is not, in other words what is exempt from the cover. These clauses are usually listed in your policy document under a heading called Memoranda.

Acts of war, riots, political acts, public disorder or terrorism are always listed under the exemption clauses in a car insurance policy. Most of these are covered under SASRIA  (South African Special Risk Insurance Association) and you will notice on your policy document that a very small amount of your premium is for the SASRIA cover. Just make sure that it is listed on your policy.

Also take special note of the description of use clause. Unless you specifically bought business insurance you are only covered for social, domestic, pleasure purposes and driving to and from work. If you use your car for business on a regular basis make sure you have business cover.

There are various other important clauses covered in this glossary, such as the average clause. Make sure you are familiar with all the clauses applicable to your car insurance policy.