Insurance companies label car insurance policies in several ways, it is important to know what is meant by third party cover. We need to be sure we understand what we are covered for when it comes to buying third party car insurance.
DISCLAIMER
Car insurance is no simple matter, and for this reason, we recommend that readers treat this article as only information. It is best if you contact a certified, financial advisor for professional guidance when wanting to buy a car insurance product.
WHAT TYPES OF THIRD PARTY CAR INSURANCE ARE THERE?
Third party cover involves two types of car insurance, namely, third party, fire, and theft insurance, and third party insurance.
THIRD PARTY, FIRE, AND THEFT INSURANCE
With this kind of insurance, you are not covered for any damage done to your own car when in an accident, but you are covered for any damage done to the other party’s vehicle. However, your car is covered for loss by theft or fire as well.
If the car accident is not your fault, you will be able to claim against the third party, who hopefully is insured.
THIRD PARTY INSURANCE
This option is the most affordable, but has the least benefits. The policy covers any damage done to the other car (third party) or if their car is written off, but unfortunately your car is not at all covered for any damage or loss.
WHY HAVE THIRD PARTY CAR INSURANCE?
Third party car insurance plays a huge role in financially protecting a car owner. Imagine crashing into a R1 million car, when it has been clearly established that it’s your fault? Even though damage may seem insignificant, the cost of repairing or replacing genuine car parts of such an expensive car can be a lot. Would you be able to afford to pay R100 000 cash out of your own pocket for damages or even more if the third party’s car has been written off?
ANOTHER COMPELLING REASON TO HAVE THIRD PARTY COVER
Only 30% of all South African motorists are insured. It is quite frightening that the remaining 70% drive without cover. This means that the chance of a third party not being insured should you be involved in car accident is about 70%. Hence, even more the reason for you to obtain cover with at least third party car insurance.
WHAT HAPPENS IF YOU ARE NOT GUILTY OF CAUSING THE ACCIDENT?
If you, as the driver, are not responsible for the accident, you would obviously claim from the responsible party. According to a ‘Money Marketing’ article, a motorist covered only by third-party insurance cannot claim directly from his insurance company. He can only claim from the person that was the cause of the accident. This is why having comprehensive car insurance cover pays off because you can claim from your own insurance company in these circumstances….
PMD OFFERS YOU AFFORDABLE CAR INSURANCE
You have seen how crucial it is to be covered with at least third party car insurance in South Africa. Why not find out more from PMD about car insurance? You can buy affordable car insurance with PMD, by accessing their Online Insurance Purchase Platform. The process is not difficult and doesn’t take long. No need to chat with anyone but you can use our call-back facility should you encounter any problems. We’ve made audio and video materials available for more information.
Disclaimer:
This article was prepared by Eric Sandmann in his personal capacity. The views and opinions expressed in this article are the author’s own and do not reflect the views and opinions of Prime Meridian Direct (Pty) Ltd, FSP41040 (car insurance and life cover products). The views and opinions in the article should not be attributed to anyone but the author unless expressly stated. Nothing in this article should be relied upon as advice, this publication is presented for informational purposes only. No person should act or refrain from acting in reliance on any information found in this article, without first obtaining proper financial advice from the appropriate professional. The author makes no claims, promises or guarantees about the accuracy, or completeness, of any information linked from, referred to, or contained in this article. The author reserves the right, to edit and change the content of this article.
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