Do you Have the Right Car Insurance? Comprehensive vs. Third-Party Insurance

You’ve bought a car and now it’s time to decide what type of insurance you’re going to get. You might already know about the different types of insurance you can take out in South Africa, but which one is best for you?  

In this article, we’re going to compare car insurancesc  and look at the cheapest and most expensive types: third-party insurance versus comprehensive insurance.  

Third-Party Insurance 

This is the most basic type of car insurance in South Africa. It covers you only for damage you cause to another’s property, not your own. This property could be their car and/or something else, like a laptop in the boot of their car. It could even be a house – if you crashed into the perimeter wall of someone’s home, for example. 

Third-party insurance is also the cheapest in terms of monthly premiums – because you’re insured for less than you are with comprehensive cover. It’s a good choice if you drive an older car that you don’t mind having a few dings and scrapes. However, any car can become unroadworthy following an accident, so it’s important to consider if you would have the funds to repair your vehicle if it’s damaged that badly in an accident. 

If you’re on a really tight budget, then third-party insurance might be the right choice for you. It’s way better than having no insurance at all, and it will protect you from liability in the event you cause an accident. 

Comprehensive Insurance 

This is the most expensive car insurance because it provides the most comprehensive coverage. It covers you for an array of eventualities, including damage to someone else’s property, damage to your own property and car theft or hijacking.  

According to the Road Traffic Management Corporation’s (RTMC) State of Road Safety Report, fatal accidents alone made up 2,327 of the crashes on our roads in the first quarter of 2024.1  The accident stats in South Africa are high, indicating a need to have cover for any situation because there’s a good chance you’ll one day be in one, even if it’s just a little bumper-bashing. 

Comprehensive car insurance also covers you for less-common eventualities, such as fire and flood. It’s possible that your car might be damaged by either of these, especially considering the weather over the last few years in the country (we’re talking about dry conditions that lead to fires as well as heavy rain).  

Comprehensive insurance might be best for you if your car is newer and you don’t want to drive around with bashes and dents. It’s also the best option if you can afford to cover it comprehensively, because this could save you money in the long run – you won’t be left paying for repairs out of your own pocket should you have an accident.  

It’s interesting to note that if your car is financed, the lending institution will more than likely require you to have comprehensive cover on the vehicle – it’s one of the terms of the contract. This is so that they protect their asset (as the car belongs to the bank until you’ve paid it off). So, you might not actually have a choice in the matter. 

To sum it up, here’s a handy table that will help you understand the differences between third-party insurance and comprehensive insurance at a glance. 

You’ll notice we mention Sasria in the last line of the table. This is the only non-life insurance company in South Africa that provides special risk cover, which includes situations like civil unrest, public disorder, strikes, riots and terrorism. Most insurance companies will automatically include Sasria cover in your premiums – it’s not optional. But don’t worry, it’s typically only a few rands, so it won’t break the bank. 

Now that you know the differences between third-party and comprehensive cover, it’s time to make your decision. The only person who can determine which is right for you, is you.  

Just make sure that when you’re calculating how much you can afford to pay for a car every month, you get insurance quotes and factor this in, because driving with some cover is better than driving with nothing.