Yes, you need car insurance, but there are many variations on the standard monthly premium comprehensive or third party insurance policy. You've probably noticed that there are plenty of car insurance companies on the South African market, and for you that's a good thing! It means that insurance companies have become more creative so that they can stand out in the market. As a result, more and more companies are offering unique car insurance products. You might not even know that some of these existed, but depending on your needs one of the below options could be the perfect choice for you. Read on to find out more!
1. Pay as You Drive Car Insurance
If you drive less than the average 14,000 km per year then Pay-as-You-Drive from Hollard car insurance might work out cheaper for you than a traditional policy. You’ll need a car tracker installed that will allow the insurance company to check how many miles you drive each month. Then, your next month’s insurance premium is based on how far you have driven the previous month. Pay-as-You-Drive might make sense if you have a second car that is only used now and then or if you only use your car on one or two days a week.
You may have to buy a satellite car tracker, but that cost could be repaid from savings on your monthly insurance premiums. Your car is also less likely to be stolen or hijacked if criminals can see there is a tracker fitted, so your benefit is doubled, peace of mind AND lower premiums. Of course, you might already have a car tracker installed, in which case the first-year cost will be much lower.
2. Car Insurance that Includes Depreciation
Your car is worth less each month than the month before due to depreciation. This means that the pay out for any insurance claim you make is also less each month (since an insurance company will only pay the real value of the car) and yet most insurance policies make you pay the same premium all year long, no matter what your potential pay out is. But King Price Car Insurance policies decrease your premium month by month to reflect the monthly reduction in your vehicle’s value.
If you're looking at saving Rands, this could be a great plan for you. Though King Price does not offer a no-claim policy to those few who are lucky enough to avoid having to make a claim, their depreciation policy still works out as cheap insurance for many South African drivers.
3. Regular Driver Insurance
If you run a company with several vehicles, or if you have a large family with many drivers on the same car insurance policy, then it can be helpful to have insurance that covers the regular driver rather than having to give the name of each driver and the vehicle he or she usually drives.
Momentum Insurance has a policy that includes this feature along with other attractive ways to reduce your insurance premiums. Fitting safety features such as a satellite car tracker and proving that you have fitted them will reduce your premium at Momentum by up to 20%, which is a great discount when paired with the convenience of a regular driver policy.
4. Off Road Car Insurance
Many roads outside South African cities are barely there at all, but some South African car insurance policies exclude off-road use, even though this is a fact of life for many policy holders.
If you have a bought a 4-wheel drive vehicle such as a Landrover specifically so you can explore the veldt or other areas where there are few public roads then you need to be insured properly in case of accident. You'll need to look for specific off road car insurance, but fortunately, both OUTsurance and Santam offer these kinds of unique policy.
5. Driving Abroad Car Insurance
If you regularly drive outside the borders of South Africa then you'll need an insurance policy that covers you for foreign driving. Some insurers will cover you (for an extra premium) if you contact them before you cross the border, but if you have a policy that includes driving abroad as standard then you’ll save yourself a lot of hassle. OUTsurance offers an Out-in-Africa policy which is perfect for the needs of people who live near the border or who take regular trips abroad to neighbouring countries.
Car Insurance Products in Conclusion
We all have different car insurance needs depending on our jobs and family circumstances, or on our budget or driving needs, so we all need to look carefully at standard insurance policies to check how suitable they actually are for us. It's no good paying R4,000 a year in premiums only to find you are not covered because of an exclusion clause in your policy. Innovative insurance company products such as Pay As You Drive and premiums that take account of the falling values of our vehicles are well worth a second look. They might not be right for you, but then again, they might be, and if they are, you're likely to save yourself a fair amount of money by getting a policy that truly fits your needs.
Main Subject: car insurance
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