ABSA iDirect vehicle insurance is the car insurance department of ABSA, The Amalgamated Banks of South Africa. Absa is a subsidiary of the Barclays Africa Group and offer their services to individuals, small businesses commercial enterprises. According to their website, Absa ‘feels’ that the way that they provide their services is of equal importance to the actual services themselves. The executive directors of Absa are David Hodnett and Maria Ramos.
Two out of three drivers in South Africa have no insurance, perhaps because they believe the Road Accident Fund (RAF) covers them if they have an accident, but they are wrong. The RAF covers injuries, not property. We all pay into the RAF through an extra tax on the petrol and diesel we buy, but damage to your car or any car you hit is not covered, even if it was the fault of an uninsured driver. That’s why you need car insurance.
and the awful standard of driving you are right to be terrified of the idea of driving without insurance from a reputable company.
When you consider the number of uninsured drivers on our roads
ABSA iDirect Vehicle Insurance Options
ABSA iDirect car insurance offers three types of policies that are designed for people with different needs.
Third Party Policy
ABSA iDirect Third-Party vehicle insurance is the lowest cost option and is mostly aimed at young drivers with older vehicles. If your main concern is to remove the worry about paying for another vehicle’s damage in a collision that is your fault, then third-party car insurance will cover you.
That’s all it will do, though. It won’t pay for any damage to your own vehicle and you won’t get a payout if your vehicle is stolen or hijacked. But if your car is old and has a low value, this might not concern you too much.
Third Party, Fire and Theft Policy
ABSA iDirect Third Party Fire and Theft insurance policies are another low-cost option aimed at younger drivers who need to reduce their premiums to the minimum. It pays out if you damage another vehicle even if the accident is your fault, but it also covers you for theft and fire damage to your vehicle. Theft here includes hijacking, and if you live in one of our cities that is plagued by this crime, then you would be wise to consider this policy rather than just the Third Party policy mentioned above.
The ABSA iDirect comprehensive policy costs more because it includes damage to your own vehicle as well as cover for legal liabilities (at the time of writing this article, the cover offered is R3,000,000). Liabilities covered include legal costs and payment for loss of earnings by a driver who is injured in a collision – even if that collision is your fault.
Comprehensive policies are aimed at drivers with newer vehicles that are would cost more to replace.
Insurance Policy Extras
Standard insurance policies cover factory-standard vehicles and equipment. It is reasonable for any insurer to expect an extra premium if you want to extra cover for loss of accessories you have fitted such as speakers, alloys and spoilers.
Items such as a tow bar, alloy wheels and body kits can be included in your comprehensive policy if you are willing to pay extra. These non-standard accessories are never covered by a standard comprehensive policy. Expensive non-factory fitted sound equipment can also be covered against damage or theft by paying an additional premium on your comprehensive policy.
Car hire that will provide you with a vehicle while yours is being repaired after an accident is worth considering if you need your car to earn your living. This means paying a higher premium, but ABSA will pay for car hire for a set number of days if your car is off the road due to an accident.
If you have taken out a loan to buy your car then credit-shortfall insurance cover is another comprehensive insurance policy extra to consider. You might have paid R100,000 and borrowed that amount to finance the car, but its retail value is only R70,000. If your car is written off you will get an insurance payment of R70,000, leaving you still owing R30,000 to the finance company. Credit shortfall insurance will cover the R30,000.
Accidents are going to happen no matter how good a driver you are. If you drive long enough, then chances of someone running into you are high, and if that does happen, you will be glad you have insurance.
Driving without insurance is a grave risk to your bank account, financial health and actual health. Yes, insurance does cost money, money that we would prefer spending on a vacation or a gadget, but the financial and legal consequences of smashing someone’s 8 million Rand Mercedes are horrifying. The Merc’s owner’s insurance company will come after you for every rand you have and every rand you will ever earn for the rest of your life. That is why you need insurance.
Main Subject: ABSA iDirect Vehicle Insurance
Other Interesting Posts
Best Car Insurance Company for 2015
For the last two years Carinfo.co.za has been conducting a comparison analysis of all the ...read more
What Kind of Car Insurance is Right for You?
What Kind of Car Insurance is Right for You? Yes, you need car insurance! As a ...read more