The Territorial Limits in a car insurance policy document explain in which areas or countries the insurance company will accept responsibility for damage or loss. Any claim for an insured event that took place outside the borders of the territorially limited area will not be paid by the insurance company.

In South Africa most car insurance companies will include the following countries in their lists of countries enjoying cover: South Africa, Botswana, Lesotho, Malawi, Mozambique, Namibia, Swaziland and Zimbabwe. Only the insured person will be covered when driving in these countries outside South Africa.

Do not accept that your car insurance policy automatically include these countries. Check before you leave the South African borders. Off-road insurance for 4X4’s may include more countries – again – check first. If you want to use your car inside countries excluded you can still contact your insurance company to see if they are prepared to provide you with special cover for the time you will be there.

Territorial Rating is the term used where insurance companies classify risks by geographical location when setting car insurance premiums. In South Africa we have good examples of that; you pay much more for car insurance in some areas due to those being classed as high risk areas.