In a time when the world has gone to financial bits and pieces, people are becoming increasingly committed to restricting their budgets until they’re in a better position to reinstate a few expenses and once again have the funds for a bit of fun. Until that happens, it’s a bit of the old belt tightening across all areas of our lives.
1 area where you can trim down by a good few hundred Rands (or even a couple of thousands) per month is your car insurance. Recently, there have been a few cheaper car insurance products launched to market which could help you in this endeavour. To make it even easier for you to decide which of the different super cheap car insurance options out there is suitable for your needs, we’ve done a brief breakdown.
The cheapest: Third party only
This is the cheapest type of car insurance around, because it literally only covers legal liability. That’s insurance talk for the costs resulting from damage to other people’s property if they’re involved in an accident with your car. These costs can be huge. Much higher than you’d expect and definitely too expensive to come out of your own pocket. That’s why you’ll usually hear the expression, ‘better to have some cover than none at all.’
It won’t cover anything other than this 1 risk.
Cheapy-cheapy: Third party, fire and theft
It’s unimaginatively named, but it does accurately describe what’s covered… This policy covers theft and hi-jacking, damage to your car by fire and attempted theft and hi-jacking, as well as damage to other people’s property resulting from an accident involving your car.
It’s pretty decent coverage for the price, but it’s important to note that it doesn’t cover any damage to your car from an accident.
Lots of value for less money: Theft and write-off
We’ve found a recent addition to the cheaper car insurance world that’s kind of gone by unnoticed… It’s insurance for theft and write-off scenarios. The details may differ between insurers, but this policy in particular covers theft and hi-jacking, damage to your car from an attempted theft and hi-jacking, the total loss of your car, even if the cause is hail, and damage to other people’s property resulting from an accident involving your car.
It’s kind of brilliant if you’re not looking to cover accident damage for your car.
Comprehensive cover for around R299 a month
This is a newbie on the South African market and involves a ‘pay per k’ approach. Basically, the less you drive, the less you pay. The details of this policy may differ between insurance companies, so we looked at this option from King Price, who offers comprehensive cover for cars whose value is R500,000 or less and are only on the road for 100km or less every month. It seems that because your time on the road exposes you to more risk, if you spend less time driving, your car could cost from R299 per month to insure comprehensively.
These are the 4 cheapest car insurance policies on the market that we’ve found, and in these financially difficult times, it’s worth looking to see if there’s something that can work better for your budget.
Posted in partnership with King Price Insurance
