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Third Party Only Car Insurance offers a basic and more affordable form of cover for your car by covering the damages that you have caused to other parties and their property in the event that you are responsible for an accident.
What is Third Party Car Insurance?
Third Party Car Insurance offers a basic and more affordable form of cover that covers the damages that you may cause to another vehicle in the event of an accident. While costs differ from company to company, the cost of repairs is normally fully covered minus your excess. If your car is damaged through your own fault, you will have to cover the repair or replacement costs yourself. Third Party Car Insurance covers the costs if your car causes damage to another vehicle.
What does Third Party Car Insurance not cover?
This type of insurance does not cover the damages or losses to your own vehicle in the event of an accident. In this instance, you have to pay for the repairs and/or replacement parts yourself. It is important to note that if you are involved in an accident that is not your fault, you can claim against the person who caused it.
Who is Third Party Car Insurance best suited to?
This type of Car Insurance is best suited to people who have either an older or low-value vehicle that is ideally already paid off, or who don’t drive their vehicle very often or for very long distances. This minimises the potential risk of being involved in an accident, or having to pay towards the high costs of repair or replacement parts.
Who is the third party?
If you do opt for this type of Car Insurance, you need to know what exactly and who exactly it covers. The third party is the person whose vehicle has been damaged because of your actions, and who lodges an insurance claim against you. The first party is you, the person insured, and the second party is your insurance company who settles any claim that arises.
Mandatory Third Party Car Insurance
Since 2011, the South African Insurance Association (SAIA) has called for mandatory Third Party Car Insurance, with the argument that if all drivers were insured, the cost of insurance would come down and there will be more funds available to repair the damaged cars on our roads. While this type of insurance isn’t mandatory yet, it may very well be in the near future. In the meantime, if you haven't invested in Car Insurance, and you fit the bill for Third Party Car Insurance, have a look at the options available to find the best one for you.