Comprehensive car insurance should have you covered – but what if it’s not as comprehensive as you think? Whether you’re an off-road enthusiast or just need reliable cover for daily drives, here are some key things to check before signing up.
Some things in life should come with a manual: how to navigate taxes, apply for a home loan, or choose the right car insurance. With jargon-heavy policies and those sneaky terms and conditions, it can be hard to know if you’re really covered for what you need.
The word ‘comprehensive’ suggests full protection – accidents, theft, natural disasters – but not all policies are created equal. If you’re heading off the beaten track or simply want the right protection, here are seven key areas to focus on:
1. Get a simple, flat excess
Every claim comes with an excess – the amount you pay out of pocket before your insurer covers the rest. Look for a policy with a flat excess, rather than one that varies based on the incident type or driver. Multiple excesses can add up quickly, especially if there are extra charges for things like young drivers or after-hours accidents.
2. Make sure both write-offs and minor accidents are covered
A fender bender in the city or a nasty collision on a gravel road – both should be covered. Some policies limit cover for smaller repairs, especially if your policy is new. Check if your cover changes over time and whether there are any waiting periods for full protection.
3. Ensure hail damage is included
Hailstorms in South Africa can be ruthless, leaving your car looking like it went through a golf-ball fight. Some insurers exclude hail cover unless you specifically add it. If your adventures take you into storm-prone areas, make sure it’s included.
4. Check the insured value of your car
If your car is stolen or written off, what will your insurer pay? Policies vary between retail value (what a dealer would sell your car for), market value (average second-hand price), and trade value (the lowest, what a dealer would pay for it). Retail value is ideal, ensuring you can replace your car with a similar one.
5. Get enough third-party liability cover
Accidents can get expensive, especially if they involve luxury cars or property damage. Third-party liability cover protects you if someone sues for damages. If your cover caps out at R1 million but you hit a R5 million Ferrari, you’re in trouble. Make sure your liability cover is enough to handle worst-case scenarios.
6. Check that other drivers are covered
Many policies cover accidents even if someone else is driving your car with your permission. However, some insurers charge an extra excess if the driver isn’t listed on your policy. If you share your car or take turns driving on road trips, check what applies.
7. Understand additional fees beyond your premium
Some insurers sneak in extra costs beyond your monthly premium, including:
- Initiation fees: One-off setup costs.
- Admin fees: Monthly service charges.
- Inspection or tracking device fees: Required by some insurers to validate cover.
Car insurance should be straightforward, whether you’re insuring your rugged 4×4 or daily commuter. Taking the time to understand your policy can help you avoid expensive surprises down the road. Need more info? Check out Naked Insurance to see how they do things differently.
