Budget Insurance aims to make car insurance affordable for consumers, no matter how much disposable income they have. There are several types of car insurance, so here’s a handy guide to help you choose the right kind of policy for you.
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What cover do different car insurance policies give you?
The SA automotive retail market offers consumers a wide variety of new- and used vehicles to choose from. It seems there is a model and derivative to suit virtually every buyer’s preference, requirements and budget… Search through tens of thousands of vehicles stocked by hundreds of dealers on Cars.co.za
So, if you consider the disparate values, owner profiles and usage patterns of motor vehicles on our roads, it stands to reason that the insurance industry would offer motorists numerous types of car insurance policies through which to insure the value of their assets and cover their vehicular liability.
Let’s look at the kind of cover that you’ll get under each of Budget Insurance’s car insurance policies.
Comprehensive car insurance
Of all the types of car insurance, comprehensive Car Insurance represents the proverbial “full package”. It covers the most risks, including theft and hijacking, loss, accidental damage, and 3rd-party damage.
Theft, hijacking, and loss
If your car isn’t recovered after being stolen or hijacked, Budget Insurance will pay out the amount stated in your policy schedule – usually based on the vehicle’s retail, market or trade value. If the car is recovered, the policy also covers damage or loss incurred because of the theft/hijacking.
Accident Cover
If you’re involved in a vehicular accident, whether it’s your fault or someone else’s, Budget Insurance will pay to repair or replace the parts of your car that are damaged. If your car is no longer driveable, the firm will also pay for a tow truck to transport it to a panel-beater yard and cover the costs of storage too.
Third-party cover
If you damage someone else’s car in an accident that is your fault, did you know you can be legally responsible for paying to repair the damage? Third-party cover protects you when this happens by covering the costs of the repairs up to the limit in your car insurance policy’s schedule.
Other benefits:
Budget Insurance’s comprehensive car insurance benefits also include Accident and Breakdown Assist plus (as detailed at the end of the section “Accident Cover”), Home, Medical, and even Legal Assist.
You can also select the optional Cash Back Bonus with your Budget Insurance policy and, if you remain claim-free for 2 years, Budget Insurance will reward you by giving you 15% of your premiums back.
Third-party, Fire and Theft car insurance
This is the more affordable mid-range option between Comprehensive and Third-Party Only.
Most of the time, when 2 or more cars are involved in an accident, one of the drivers is at fault. If that happens to be you, the other driver(s) can hold you legally liable for the damage you cause to their car(s), and any of their belongings. Depending on the severity of an accident, a court may order the driver of an uninsured car (if they’re mainly at fault) to pay up to millions in damages to the other drivers.
With third-party cover (up to a specified limit), a car insurance company will cover the damage to repair the other person’s car and/or property, as well as any damages awarded against you in a legal case.
Fire Cover
Fire might seem like quite a specific risk to insure against, but there are many ways this peril can affect your car. Whether your car catches fire, you have a fire in the home that spreads to your vehicle, or a blaze in the veld spreads to your property, fire cover will cover the cost of repairing or replacing your car.
Theft Cover
If you’ve paid off your car (or perhaps you bought it with cash) and it gets stolen (but not subsequently recovered), a car insurance firm will pay out the value of your vehicle based on what’s stipulated in your policy schedule… See also: How To Work Out Car Insurance Excess & Deductibles
BUT if a car you bought through a finance agreement is not insured and then gets stolen, you’ll have to keep paying it off even though it’s no longer in your possession. With Theft Cover, you will be paid out for your vehicle so you can settle what you still owe on it and, possibly, put a deposit down on a new car.
Third-Party-Only car insurance
This is the most basic and, therefore, -affordable type of car insurance. It’s tailored for motorists who are on a tight budget and who drive cars that are not worth all that much (and already paid off). While 3rd-party-only insurance doesn’t cover the value of your vehicle if it’s involved in an accident, you are covered if you are deemed liable for damage caused to another vehicle (and its contents) or structure.
For example, consider 3rd-party-only insurance if you own a long-serving or second-hand entry-level car that you use as a runabout or your young dependents rely on to get around. Or, to put it another way, if the phrase “it will cost more to repair than it’s worth” aptly applies to your vehicle.
If you drive a car that’s worth under R250 000, Budget Insurance offers a trio of car insurance packages under its Budget Lite Insurance banner. Click here to find out more about Budget Lite 1, 2 and 3
Other insurance products (add-ons)
Budget Insurance further offers a wide range of add-ons you can include with any of its insurance policies. These include 4×4 Insurance, Scratch & Dent Insurance, Auto Top-Up Plus, Tyre & Rim Guard, and Extended Vehicle and Pre-owned Vehicle Warranties.
Enquire Now!
We hope that this article provided you with a better understanding of the different types of car insurance that are available to SA motorists (car insurance companies’ policies do vary – there are fine differences).
Do you want to learn more about car insurance or review your car-insurance requirements with the help of experts? Budget Insurance’s team is always ready to assist; contact them on 086 1600 120 or utilise their online car insurance calculator, which gives you an accurate and budget-friendly quote in minutes.
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