Why Third Party Car Insurance Is Just Not Enough
When it comes to car insurance, cheaper does not mean better (seriously, it never does). We explain what you need to know about third party insurance and why you need more protection for your vehicle.
A number of people prefer to get third party insurance in an attempt to save money. And we get it - third party is super cheap. But that’s because it significantly lacks in what it covers compared to comprehensive insurance.
The purpose of third party insurance is to ensure that you have some sort of cover in the event of an accident or claim. Third party cover is designed to cover ONLY the third parties involved in an accident and not your own car. We explain this in more detail in the following section...
What is third party vehicle insurance?
Third party is pretty much what it says it is. The name is simple, straightforward and lets you know exactly what kind of cover you have.
Basically, you are the first party, your insurer is the second party and the driver or passenger of another car involved in an accident with your car is the third party.
What does third party cover?
Let’s look at an example…
You are involved in an accident, let’s say, a bumper bashing with another car.
If you do not have any car insurance, then you might have a few thousand rands available to fix your own car, but do you also have the cash you need to fix the other car?
With third party insurance, the costs of damage to the other car are covered as well as injuries, loss of property and other damages. But that’s all that is covered.
What about a more expensive situation
In the sort of situation mentioned above, third party cover might seem adequate, and no doubt it is. But what if the accident was more serious? What if your car was written off and the other car was badly damaged? Do you have the spare cash lying around to buy a new car for yourself AND pay for the fixes for the other car?
The chances are highly unlikely.
The bottom line: third party insurance DOES NOT cover the costs to your own car or your property. And that just sucks. Right?
Why third party cover is not enough
You have to pay for the damages done to your own car
Third party cover does not include damage costs to your car. So, if your car loses control and you skid out and hit a tree, you have to pay for the costs.
You’re driving home from work, it’s a Friday afternoon and you’re in a great mood. You finally saved enough money to book that dream vacation away with your partner, and while sitting in traffic, you are dreaming about sipping on Pina Coladas on the beach and in your zoned-out space, you hit another car from behind.
You have third party cover, which is okay because the damage costs to the other car come to R20 000 and you only have to pay in an excess of R2000.
But then there are the damages to your own car which amount to R30 000. Yikes. There goes the holiday fund.
You can avoid this situation entirely (and still afford to go on your dream holiday) with comprehensive car insurance.
How to find affordable car insurance
There’s a common misconception that comprehensive insurance is too expensive. And while this might be true with a number of other insurers, with Oneplan vehicle insurance we have changed the way that insurance works.
We created our insurance to be 100% flexible to your needs and your budget. How we do this is using a sliding scale. Basically, you have total control over how much cover you want based on a percentage you choose. If you select 50% cover, then in the event of a claim, we will cover 50% of damages and you pay the other 50%. It’s that simple.
This means that we make comprehensive car insurance affordable and flexible.
You can read more about our flexible cover right here.
Press pause on your cover
What’s more, is that you can press pause on your cover whenever you want to.
Change your cover with the click of a button
Our Oneplan App lets you manage your policy, access your cover and chat to a team member with the click of a button. You can also adjust your cover whenever you want to.
Claims made simple
Thanks to our App, you can simply and easily upload and process a claim.
Yours in uncomplicated car insurance,