If you are driving in South Africa, whether a citizen or exile resident, you ’ ll need to think about taking out a cable car insurance policy. This guide explains all you need to know about car insurance in South Africa, with sections on :
Car insurance in South Africa
Unlike in many countries, car insurance in South Africa is not compulsory. however, there are a high number of road accidents and fomite thefts in South Africa each year. Thus, it makes common sense to take out a good car indemnity policy to protect yourself against unnecessary expenses .
There are many South african policy companies that provide cable car insurance coverage. Policies insure the fomite quite than the driver. however, you will need to name the listed or designated driver of the car. You can add early drivers on but this may affect premium costs. Although it is the car that is insured, you can get extended coverage that allows you to drive early people ’ randomness cars.
Reading: Car insurance in South Africa
Because cable car policy in South Africa isn ’ thyroxine mandate, many drivers don ’ t have it. In fact, around 70 % of cars in South Africa are not cover according to research .
The Prudential Authority, which is an arm of the confederacy African Reserve Bank, regulates the car insurance sector in South Africa. many companies belong to the south African Insurance Association ( SAIA ) .
Can you use car insurance from another country in South Africa?
If you have a basic car policy policy in another nation, you won ’ t be able to use this in South Africa. however, if you have taken out an external policy or a full comprehensive examination policy that includes coverage afield, you can transfer the policy. Check with your insurance company whether you are covered ahead of moving .
Regardless of whether or not you can use your abroad car indemnity policy, you will need to register your vehicle with the south african authorities when you import it .
Types of car insurance in South Africa
If you plan on drive in South Africa, there are three different chief kinds of car policy that drivers can choose from .
Comprehensive car insurance
This is the most extensive – and the most expensive – coverage. If you have financing for your car, the bank will insist on comprehensive examination coverage .
As the name implies, this insurance covers reasonably much everything including price, larceny, and costs to your own cable car and third parties in the consequence of an accident where you are at demerit. Policies vary between different insurers, so you ’ ll indigence to check whether things such as breakdown aid or coverage abroad are included or not .
Limited car insurance
limited coverage is slightly cheaper than comprehensive coverage and covers you for larceny, fuel, and hijacking. It besides covers you against third-party claims. however, you don ’ t have coverage for your own fomite ’ second damage in the event of a collision .
Third-party car insurance
The cheapest of the bunch, third-party indemnity will only cover damage done to other people ’ randomness place. This is frequently not a very wise choice unless you own a very old vehicle. Third-party policy won ’ triiodothyronine cover you if you drive your car outside of South Africa .
If you want extra coverage but preceptor ’ deoxythymidine monophosphate want to take out a fully comprehensive policy, some companies offer the option of taking out extra policy for specific things such as wayside aid .
Costs and excess
Besides the type of car policy you take out in South Africa, your premium costs will be based on a number of unlike factors. These include :
- current value of your vehicle – you can choose from four different value options in South Africa;
- your driver profile – age, health, and driving history;
- where you live;
- how much you drive, with some insurers offering discounts or pay-as-you-go options for drivers who do not travel much;
- what you use your car for;
- how many drivers are listed on the policy.
In addition to this, your excess or deductible will affect the cost. This is the amount that you have to pay towards any title you make. All insurers have a compulsory excess, but you can increase this in holy order to make your monthly premiums lower .
Some insurers besides offer a discount if you agree to install a tracking system on your vehicle .
Additional forms of car insurance in South Africa
Most south african companies offer the three forms of car policy listed in the above section as the standard types. however, some have extra standalone policies that you can purchase for extra coverage. This can be utilitarian if you buy third-party insurance and want limited extra coverage .
Examples of extra policy you may find include the follow :
- Legal insurance – covers any legal expenses should a claim against you end up going through the courts.
- Breakdown assistance – covers costs such as towing and replacement transport if you suffer a vehicle breakdown in South Africa.
- Medical insurance – covers medical costs should you suffer an injury and need medical treatment following a car accident.
Car insurance bonuses and penalties in South Africa
confederacy african car insurance normally comes with a deduction option for long-run customers known as the no-claims bonus. This is where you are entitled to a percentage rebate on your annual premium if you go a certain period without making any policy claims .
Insurers in South Africa tend to have their own person schemes and incentives. broadly, no-claims bonuses are offered after a three-year period, with discounts increasing incrementally with each passing year without a claim .
You should check the no-claims offer before signing up for a policy. not all companies offer it as share of the standard software. Some charge an extra premium fee which you can choose to opt into .
You should besides check whether no-claims periods can be carried over between indemnity companies or from other countries. Again, the position varies from caller to company .
While insurers may reward full drivers who haven ’ triiodothyronine made any claims, they are besides likely to punish those with a bad drive criminal record or who are considered eminent risk. Your premiums are likely to increase if you :
- have incidences such as speeding or drink driving on your record
- have caused any accidents through careless driving
- are a young or inexperienced driver
Car insurance companies in South Africa
You can choose between a roll of different South african companies that offer car insurance. According to Compare ‘ n Review, lead car insurance companies in South Africa include :
- King Price
- 1st For Women
Another choice is to purchase coverage with an international car insurance provider that covers you for driving outside South Africa. Premiums will broadly be more expensive but this is a commodity option if you travel frequently and need to drive afield .
You can compare south african car indemnity policies and premiums using a comparison web site such as Compare Guru .
How to choose car insurance in South Africa
Be surely to shop around when looking for an insurance company. Consider factors beyond what the monthly premium fee is and make certain you choose a company licensed by the Financial Service Conduct Authority ( FCSA ). Things you might want to consider are :
- Company reputation – how does it fare in consumer website ratings and what is the customer feedback like on review sites?
- Claims process – how easy is it to make a claim and how long are you likely to have to wait for compensation? Check the small print and, again, look at reviews.
- Policy coverage – what is included and what is not covered? Do you get coverage abroad? If you opt for fully comprehensive, check for any exclusions.
- Excess/deductible options – what is the compulsory excess you will have to pay when making a claim and what options are there for increasing it?
- No-claims bonus – what bonuses are offered and can you transfer them between insurers? Are any other discounts offered?
- Ethical performance – how green is the company? How does it score in terms of Corporate Social Responsibility (CSR)? Does it pay fair wages? You can check company ratings on websites such as CSR Hub.
Applying for South African car insurance
Each policy company in South Africa has its own application procedures. Some companies ask you to complete your application over the telephone and send off copies of any supporting documents. In-person and on-line applications are available with many providers .
You will typically need to provide :
- valid ID such as a passport
- contact details including proof of South African address
- proof of the car’s existence (e.g., registration number)
- South African ID number
- customs papers if you imported the car to South Africa
You will normally be asked to fill in an application form where you answer questions about your car ( for example, measure ) and yourself ( for example, driving history ). Sometimes the insurance company will request a home visit or ask you to bring the car in for inspection. This is to check the car ’ south condition .
Policies are normally sorted within a few days. You should receive your policy certificate along with an information pack with details on what to do if you need to make an insurance claim. You may besides receive a claim shape .
How to make a car insurance claim in South Africa
If you need to submit a claim, do it adenine soon as possible. Some insurers have a claims window that you must file your claim within. Make certain you have your policy number and driving license details to hired hand .
The claims summons depends on your insurance company. Some ask you to file the claim over the call. They will then send you a call form for you to complete and send spinal column along with supporting documents. Others may ask you to submit your claim on-line .
The work besides depends on what type of claim you are making. If you ’ ve had an accident, you ’ ll need to provide wide details of the accident along with details of early parties involved. Depending on the seriousness of the accident, you may besides need to contact the patrol and send the patrol report card to the insurance company. It ’ mho besides a good theme to take pictures and any witness statements to support your claim .
If you ’ re making a claim because your car has been stolen, you ’ ll need to provide details of where the car was located along with information on any security systems in place to protect the car .
In general, your insurance company deals immediately with the franchise. The surfeit must be settled by you in arrange for the new or animate vehicle to be released. If you want to get your car repaired at a particular garage, send the garage details and repair quotes to your insurance company .
Canceling a contract or changing provider
You may want to cancel a car indemnity contract for a count of reasons. For exemplify, you ’ ve found a better deal elsewhere, you ’ rhenium leaving South Africa or you ’ re simply not happy with the service you ’ ve received .
In general, it ’ mho quite easy to cancel a south african car indemnity contract. many allow you to cancel without giving a notification period. however, this can look bad to other insurers so it ’ mho best to be courteous and give at least a calendar month ’ randomness notice .
besides bear in take care that some companies won ’ deoxythymidine monophosphate reimburse you for fees you ’ ve paid upfront, which could sting if you ’ ve paid annually and have a few months left. Some companies may opt to charge a cancelation fee. You should be informed of this when you take out a policy .
Each party will have its own cancelation routine. You will likely be asked to give a reason. Your insurance company may try to persuade you out of canceling, particularly if you have no plans to take out cable car policy elsewhere .
If you are changing to another indemnity provider, check with your newfangled insurance company to see if they offer any aid with the transfer. Some companies are happy to deal with all of the paperwork and volunteer this as an incentive to attract new customers .
Making a complaint about a car insurance company in South Africa
If you wish to complain about a car indemnity caller in South Africa, you should first try to resolve the publish with the ship’s company itself. All indemnity companies should have a complaints department and a procedure to follow, which is typically submitting a ailment in write .
If you are not glad with the result of the complaint, you can take it to the south african Insurance Ombudsman .
Roadside assistance in South Africa
car indemnity companies in South Africa typically offer wayside aid coverage as part of their in full comprehensive software. Some besides sell breakdown coverage as a standalone policy or as an addition to third-party insurance.
Read more: The 7 Best Car Insurance Companies (2022)
Drivers in South Africa can besides join a membership club. The most long-familiar one is the Automobile Association of South Africa ( AA ), which provides breakdown services a well as early products .
Dealerships besides frequently provide wayside aid for an annual fee. If you buy a new car in South Africa, it might be worth enquiring about what is on offer .
The AA offers a range of different plans to suit different needs. Prices are based on your vehicle ’ s make, long time, circumstance, and mileage .