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November 28th, 2016 by


We often realise far too late the parameters of our car insurance policies, which can be a headache of unnecessary expenses.  

Reviewing and analysing your policy should be an annual occurrence, even more if / when your lifestyle changes. Certain lifestyle changes may include buying a house and having to adjust your home insurance (better security and can be combined with car insurance) or growing your family (added expenses). 

Make sure you are thoroughly covered with the right car insurance premium for you!

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The importance of an annual review can quickly be realised when assessing the coverage you have taken out, which may need updating. 

What’s In Your Car Insurance Policy?

Third Party Car Insurance

This type of insurance is the most inexpensive as it provides the least amount of coverage. Third Party insurance essentially means that if you bump into another car, your insurance provider will take care of their repair expenses, while you have to pay for your own (without the help of the insurer). 

What It Does Not Cover

Third Party insurance does not cover your loss if you have an accident. If the accident was not your fault, you can claim against the other party. 

How Is a Claim Determined?

In cases where the blame of the accident is not entirely in the hands of one party, an insurer will apply the principles of Apportionment of Damages (see below) and will pay out accordingly.  

Chapter 1 of Contributory Negligence of Apportionment of Damages Act 34 of 1956, reads:

(a) Where any person suffers damage which is caused partly by his own fault and partly by the fault of any other person, a claim in respect of that damage shall not be defeated by reason of the fault of the claimant but the damages recoverable in respect thereof shall be reduced by the court to such extent as the court may deem just and equitable having regard to the degree in which the claimant was at fault in relation to the damage.

(b) Damage shall for the purpose of paragraph (a) be regarded as having been caused by a person’s fault notwithstanding the fact that another person had an opportunity of avoiding the consequences thereof and negligently failed to do so. The apportionment of the damages will indicate the amount of damages payable in relation to the amount of fault rests on each of the two parties. 

This, essentially, means if both parties were of contributory negligence to the accident whereby one party had the chance to evade the damage, a portion of the guilt will also fall on their shoulders.

Road Accident Fund (RAF)

This will cover any personal harm endured by a third party, but not damage to the car (this will be covered by your insurer).

Needing third party insurance? Compare quotes here today

05062017 CTAs 01 02 1 - What's Covered In My Car Insurance Policy?

Third Party, Fire and Theft

Now we are getting somewhere. Third Party, Fire and Theft provides cover for the other party (as mentioned above) or if your car is damaged as a direct result of fire, explosion, lightning, attempted theft, or if your car is stolen.

This insurance policy also covers any damages to a third party, or their car, in the event of an accident.

NOTE: The most an insurer will pay out is the value of the car as stated on the schedule.

What It Does Not Cover

  • No licence while driving
  • Endorsed licence while driving
  • Invalid licence while driving
  • Driving under the influence of drugs or alcohol
  • Reckless driving
  • Unroadworthy car
  • Unauthorised use of vehicle
  • Keys left in and / or on the car
  • Leaving the scene of an accident
  • Using car for commercial purposes or for racing

When Is It Advisable To Have Third Party Or Third Party, Fire And Theft?

These types of insurance policies are perfect under the following circumstances:

  • You have an older, low-value vehicle, and it is paid off
  • You don’t drive the car very often or very far

If you have relatively little use out of your vehicle and it is completely paid off, a Third Party or Third Party, Fire and Theft insurance policy may make sense.

Is third party, fire and theft the way for you? Get the right quote for you here!

Compare With This Guy - What's Covered In My Car Insurance Policy?

Comprehensive Car Insurance

The most preferable of all three of the insurance types, this insurance policy gives you the best of both worlds. Comprehensive covers everything Third Party, Fire and Theft does as well as your own car repairs and medical damages.

Your car will also be replaced if it is written off in an accident. Emergency accommodation and petrol will also be provided should you break down far from help.

This type of insurance policy may differ from provider to provider in terms of benefits.

What It Does Not Cover

  • No licence while driving
  • Endorsed licence while driving
  • Invalid licence while driving
  • Driving under the influence of drugs or alcohol
  • Reckless driving
  • Unroadworthy car
  • Unauthorised use of vehicle
  • Keys left in and / or on the car
  • Leaving the scene of an accident
  • Using car for commercial purposes or for racing

Additional benefits can also be added to your policy. Always ensure your policy provides cover for your sound system, windscreen, canopy, and / or any specific add-ons.  

Make sure you have full comprehensive insurance! Compare car insurance quotes here

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