There are a few options when it comes to finding the right car insurance to safeguard your beloved set of wheels. Most of us know about comprehensive car insurance, generally because it’s the only acceptable choice if your car is financed by the bank. This is the most expensive type of cover that you can get for your car and gives you the most protection. To sum it up, you’re covered for a wide range of incidents, including theft, loss, damage to others, and damage that you accidentally cause to your car… Like scraping the door as you angle out of a tight parking spot. Don’t feel bad. It happens. That’s the reason why you pay for insurance in the first place.
An option that a lot of people forget about is third party insurance. It’s super affordable and completely underrated. Allow us to give you insights into this product so that you can check if it’s the right option for you.
But first… What’s in a name?
Third party car insurance is a strangely official and obvious name for a product. One of those, ‘call it what it is’ and don’t be clever names. We’re glad not all businesses have opted for this approach. Can you imagine Smarties being called ‘multi-coloured round chocolate candies’? It just doesn’t have the same ring to it.
The reason why it’s called ‘third party’ is because you’re the first party, your insurer is the second, and the third is the driver or passenger of any other car involved in a road accident with your car.
What third party covers
Let’s say you get into an accident, a little fender bender that involves a car somewhat pricier than yours. If you don’t have any insurance at all, for whatever reason, then you might be able to fix your car. But the costs of repairing or replacing anything on the other car? That could end up somewhere in the tens of thousands.
Could you afford to pay that?
If you have a third party policy, then you won’t have to worry about this because third party car insurance covers injuries, property loss, and damages sustained by others… Which you would otherwise be responsible for.
What third party doesn’t cover
This policy is the most basic level of car insurance, so it doesn’t include cover for your own medical expenses or repairs to your car. Even if these are caused by the negligence of a third party. In that context, you might be forced to seek legal action to get the third party to pay for the expenses he or she is responsible for.
What’s so great about third party?
This policy is a great option if your car is already paid off and isn’t worth too much. The kind of car that’s low maintenance, not used a heck of a lot, and relatively inexpensive to fix up. It might even be the kind of older model that would be sold for parts if you were to get into an accident, rather than pay to repair it.
Being able to get a policy for your cheaper car is the first benefit. The second (and best) benefit is that because of the limits to what is covered by the policy, it’s usually the cheapest option available.
And it’s always better to have some cover than none at all.
Here’s how you know if third party cover is for you:
- Your car is fully paid off.
- Your car is old or has (low) financial value.
- You’re planning to drive beyond South Africa’s borders. (Many countries, such as Zimbabwe, Namibia and Lesotho, require foreigners to have third party insurance.)
- You can’t afford any other type of car insurance.
If any of these 4 scenarios fit any of the cars that you own, then it’s definitely worth checking out how cheap it is to have some cover and ultimately protect yourself against the astronomical costs of hitting someone else. Take a second to get a commitment-free quote from an insurer that explains exactly what you’re covered for, offers super cheap premiums, as is known for their royal service.