Lesser-known Car Insurance Inclusions
Car insurance extends beyond just covering vehicle damage from road accidents; it offers a range of benefits that many policyholders might need to be aware of. This article delves into four lesser-known inclusions in car insurance policies that can offer significant advantages.¹
Given the current economic challenges, it’s no surprise that a report on consumer spending in South Africa reveals that people are prioritising essential expenses like groceries, housing, and transport over less essential ones, such as education and healthcare. Many might assume car insurance falls into the latter category, but this is a misconception.¹
The general perception is that car insurance benefits are limited to filing claims after an accident or for vehicle repairs. However, while car insurance protects against out-of-pocket expenses following an accident, several additional benefits can safeguard your finances.¹
Here are a few additional coverages your car insurance policy might offer:
Beyond Accidents, Your Insurance Can Also Cover:
1. Third Party Property Damage
Comprehensive car insurance not only covers damage to your vehicle but also extends to property damage. Suppose you are involved in an accident where your vehicle accidentally damages someone else’s property. In that case, your insurance can cover the cost of the damage. For instance, if you lose control of your car and crash into someone’s wall, comprehensive car insurance will cover the repair costs, protecting you from third-party claims.¹
2. Bodily Injury
Car accidents can lead to injuries not only to yourself but also to passengers and other individuals. Comprehensive car insurance may cover medical expenses for injuries sustained by passengers or other drivers in an accident. To further enhance your coverage, consider Personal Accident Cover, which provides additional protection for medical expenses if you are injured in a car crash. ¹
3. Breakdown Assistance
Managing the situation can be overwhelming in the aftermath of a car accident, especially if your vehicle is undriveable. Comprehensive Car Insurance and Third-Party Fire and Theft Insurance often include roadside assistance services. ¹
4. Weather-Related Damage
Extreme weather like flash floods and hail storms, can cause significant damage to vehicles. Comprehensive car insurance can cover the costs of repairs resulting from such weather conditions, providing peace of mind during unpredictable natural events. This coverage ensures you could of repairing your vehicle after severe weather incidents. ¹
What Standard Car Insurance Policies Typically Don’t Cover:
It’s essential to be aware of typical exclusions to manage your expectations and plan accordingly:
1. Theft of Contents Inside Your Car
Items stored in your car might not be covered under standard car insurance. For protection against theft of personal belongings from your vehicle, you would need Portable Possessions Insurance. This separate policy can cover daily items, including those you take to work or leisure activities. ¹
2. Custom Parts, Modifications, and Upgrades
Modifications to your vehicle, such as performance upgrades or custom parts, can affect your car’s functionality and warranty. Many insurers either do not cover or only partially cover modified vehicles. It’s crucial to inform your insurer about any modifications to avoid claim rejections. ¹
3. Tyre and Rim Damage
Standard car insurance policies may not cover damage to tyres and rims, especially if you frequently drive on poor-quality roads with many potholes. In such cases, getting separate Tyre and Rim Insurance for comprehensive protection is advisable, ¹ your insurer may offer this as an optional benefit.
4. Off-Roading Accidents
If you enjoy off-roading, be aware that accidents and damage sustained during such activities are typically not covered by standard car insurance. A specialised off-roading insurance policy is recommended for enthusiasts of this recreational activity. ¹
5. Loss Above Your Policy Limits
Every car insurance policy has coverage limits influenced by factors such as chosen coverage options and excess. Understanding these limits is essential to ensure adequate protection and consider additional coverage if necessary. ¹
So, while car insurance is often associated with accident-related expenses, it provides several other protections. Understanding your policy’s full range of benefits can help you maximise your coverage and safeguard your finances against unforeseen events.¹
Disclaimer:
The article aims to explain to South African motorists the inclusion of lesser-known car insurance.
If you want car insurance, only get professional advice from a certified financial advisor to make sure the product is correct. South African motorists should check the terms and conditions of their car insurance coverage before the cover of their vehicles starts.
Contact Prime South Africa, previously known as PMD or Prime Meridian Direct, for more information regarding affordable, comprehensive car insurance, which includes benefits like fixed premiums* and a reduce-to-zero excess*. T’s and C’s apply.
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