The Importance of Car Insurance
Car insurance is still seen by many in South Africa as an unnecessary expense. Those who consider car insurance as a ‘grudge purchase’ quickly realize its importance when they experience damage or loss to their car. Vehicles are amongst the most important assets and Arrive Alive indicates that a person is at great financial risk if he/she drives an uninsured vehicle. This is due to the multiple costs involved such as vehicle damages, medical expenses and liability to others, when one is involved in an accident.
Derek Wilson, Head of Hippo.co.za says, “We are appealing to all South Africans to see car insurance as compulsory. The financial implications without insurance are frightening. At Hippo.co.za we help consumers compare prices and benefits on different insurers and we are here to also help consumers get covered.”
Here are some of the types of car insurance available.
Comprehensive Vehicle Cover
Comprehensive vehicle insurance is still your best bet and it includes cover for theft and hijacking, fire damage, and accidental damages to your own vehicle as well as the vehicle of a third party. Comprehensive cover usually also includes extra added benefits such as towing and roadside assistance, which is yet another cost to consider when involved in an accident.
Third Party, Fire and Theft Cover (or Limited Cover)
This cover is more affordable than comprehensive cover as it excludes cover for accidental damage to your own vehicle. It is however crucial to have this cover for theft, hijacking and fire damage to your vehicle, as well as any costs you may be held liable for in the case of accidental damage to a third party.
According to Crime Stats SA, a total of 58 312 cars and motorcycles were reported stolen in 2013. The report also indicates an average of 28 motor vehicles being hijacked per day in 2012/13 in South Africa. This gives further insight to the importance of having car insurance that includes theft cover.
Third Party Only Cover
This is the least expensive cover as it will not cover any loss or damages to your own vehicle, but an important cover to have as it will cover the damages to another party’s vehicle, if you are at fault. If you do not have this kind of insurance, you can be legally charged for the costs of repairing or replacing another person’s vehicle after an accident. Other costs such as medical expenses (which you may be held liable for) are covered under third party cover. This cover also saves you the hassle of being sued and paying legal costs, in the event that you are liable.
Dents and Scratches Cover
This cover can help against minor damages to your car such as dents and scratches that may occur whilst your car is parked in public parking bays. The cover is also helpful should your car get damaged from small accidents such as the lamppost or low wall you did not see.
Tyre and Rim Cover
Tyre and Rim cover is handy to have when your wheels are damaged due to our deteriorating and potholed-filled South African roads.
Compare before getting insured
“Hippo.co.za now makes comparing, buying and saving on any of the above-mentioned car insurance options easy. You simply have to visit the Hippo website, complete a few details such as your make and model of your car then the website will instantly retrieve real-time quotes from different insurers. You can then easily compare benefits and prices and then select the insurer that is right for you and Hippo will arrange for them to get in touch directly,” Derek commented.
Recent independent research has revealed that at least eight out of ten people could save an average of over R427 per month* on their car insurance through using the hippo.co.za online comparison tool.
Established in 2007, hippo.co.za is South Africa’s leading comparison website that helps consumers save money by comparing a range of SA providers across financial products such as car insurance, home insurance, life insurance, medical and more. Hippo is free to use and saves consumers the time and hassle of shopping around for the best deal since the Hippo.co.za website instantly retrieves real-time quotes from the different providers using the latest Internet technology. At least 8 out of 10 people could save an average of R427 per month on their car insurance.
Hippo.co.za makes money by simply charging its partners a fee when a customer chooses to find out more about their products. The results consumers see, and the order in which they are presented, is in no way influenced by the fee hippo.co.za charges its partners or any other factors other than the price of the product being compared.