Different Types Of Car Insurance Options In South Africa

Car owners benefit from a car insurance market that has something for everyone. There is a wide variety of different car insurance packages, specials and insurance providers to choose from at any given moment. This means that car owners can find exactly the right car insurance policy for them at a competitive rate.

It is highly advisable that car owners consider their insurance needs before they begin browsing through all the different car insurance options available. This is because the vast variety of options and the sales pitches can often leave one feeling unsure about what exactly you need and what cover is truly unnecessary.

Many car insurance providers now give car owners the option of being able to customize a car insurance plan to suit their exact needs. This option has many obvious advantages over choosing a predetermined car insurance package.

Different Types Of Car Insurance Available in South Africa


Many car owners view comprehensive car insurance packages to be the best type of car insurance available. This is because this type of car insurance offers car owners the most peace of mind knowing that they are completely covered while out on the road. Comprehensive car insurance generally includes third party insurance, accident cover as well as financial protection against unforeseen events such as natural disasters or theft.

It is important to note that many financial institutions and credit providers stipulate that a buyer must opt for comprehensive car insurance when applying for vehicle finance. Due to the numerous advantages that come with comprehensive car insurance, it is the most expensive vehicle insurance option available.

Third-party, theft and fire

This is the most cost-effective car insurance option available. It is very basic and will cover the cost of damages to a third party’s property if you are involved in a collision.

Pay as you go vehicle insurance

This specific type of car insurance is an excellent option because the monthly premium is calculated based on the distance travelled monthly. Pay as you go vehicle insurance can offer excellent coverage at a very affordable rate and in many cases, it works out to be a lot more affordable than comprehensive cover.

Deciding Between Personal Car Insurance And Business Car Insurance

One would think that if you use your car for personal use then clearly it falls under personal car insurance and if you use your car for business then it falls clearly into the business car insurance category. Unfortunately, things are never really that simple. More often than not this is a very grey area and the decision on which type to go for often depends on exactly how you most use your vehicle. Let’s have a look at some basic differences between personal car insurance and business car insurance.

Personal car insurance can vary quite a bit from one insurance company to another, so it is worth finding out exactly what each insurance company’s personal car insurance cover actually will cover. Some insurance companies have a personal car insurance coverage plan that will actually cover certain business applications. If you use your personal vehicle to visit clients and you are self-employed then this may be covered in personal car insurance but personal car insurance will not, in most cases, cover the transport of goods in a personal vehicle.

Business car insurance is a lot more specific and certain types of businesses can only make use of business car insurance. Personal car insurance will not cover anyone else such as your personal assistant or another employee driving your car, to be covered by your personal insurance policy.

For this you would need to have a business car insurance policy in place.

Liability also plays a bigger role in business. If you are transporting valuable items for a client in your personal vehicle, you need to know that your personal liability will cover any potential loss or damage and in many cases a personal car insurance policy’s value will be less than the potential liability and so will not be able to cover it.

It is also possible to get a combined car insurance plan. This combines benefits from personal car insurance coverage as well as benefits form business car insurance coverage in one convenient package. This is because more and more people are using one vehicle for both purposes.