Let’s have a quick look at some of the cheaper car insurance policies available to you today. The first thing to understand is that with insurance, you literally get what you pay for. Insurance is a highly competitive product and it’s only natural that insurance companies would want to give you awesome low premiums on your monthly car insurance. The only problem is, you as an individual might carry a higher risk profile than someone else.
For Example: You have a highly stressful job, and you car could be very expensive to replace (think German Luxury Sedan) and you might be a 20 something male, who parks his car on the street at night in a not very safe area. You might even have made a few claims to your policy.
You see, you could just be an expensive person to insure!! All of these criteria are what is considered when providing an insurance quote.
Do you need Comprehensive Cover?
If you are financing a vehicle, then yes, you will be obliged to take out full comprehensive cover on your car. The vehicle finance provider would simply not take a chance with anything less than full comprehensive cover so as to protect their asset. Remember the car is actually theirs until you have completed your repayments. Sorry China. That R20 a day ‘Vida e’ coffee habit is costing you close to R400 per month, neh! Why not pay that loan off as fast as you can and consider some of the options below.
If however, you own your car outright, then there are at least a few options which could give a careful driver adequate cover. Please NOTE: None of these options are considered Comprehensive Insurance Cover, but if you’re feeling the pinch then these could help add at least a few thousand Rand a year to your personal balance sheet. Now the good news:
Alternatives to Comprehensive Insurance
Third Party – you can read about this over here. You and your car are not covered at all, but it protects you from liability. Simply put: You are personally not going to have to pay for damages related to another person or property if you are involved in an accident.
Third Party, Fire and Theft – same as Third Party with the addition of your car being covered in case it catches on fire or is stolen. So this actually offers some level of cover to your personal car and we feel that this is the minimum you should be covered for. Anything less is just taking an unreasonable risk.
Assisted Cover – This cover is actually quite good, in that the longer you keep paying your premium, the larger your cover increases by. Think of it as an insurance savings account, where you put money away each month towards an accident fund. Why am I not doing this myself you ask? Well most of these offer Third Party Cover, Fire & Theft and Hijacking right from the inception of policy – which you could obviously not offer yourself.
Prime Meridian offers quite a few of these “almost comprehensive” insurance products in their CoverGrow and MotorThrift packages. Best of all, your premium is derived from your cars value, not your personal profile AND there is No Excess to pay on claiming. Not bad at all.