This way you ensure that your car insurance is ready for the road

South Africans can’t live without their cars and that’s why you need to make sure your car insurance protects you.

Having your own set of wheels will make getting from point A to point B much quicker and easier. But beyond the convenience that comes with being a car owner, the risks of the road are all too real and you need to make sure your car insurance ready for the road.

Marius Kemp, head of personal underwriting at Santam, says car insurance has long been one of the most effective ways to avoid the financial impact of car damage or a write-off, but with so many options choosing the right policy can be daunting.

“The key to making the most informed decision lies in gaining a good understanding of the risks and what can be done to proactively manage them. Ensuring you have adequate coverage can give you the much-needed peace of mind that if the unexpected occurs, you have the financial solution you need to keep the wheels on the road.”

Traffic risks: know the facts and figures

According to Sanral’s latest reportMore than 800,000 road accidents occur in South Africa every year, with an average of approximately 2,200 accidents per day. Many of these accidents are attributed to excessive speed and driving under the influence of alcohol.

Kemp says the unfortunate reality is that even responsible drivers who obey speed limits and drive safely can be affected by fellow drivers who are careless and reckless.

In addition, the South African Police Service found that carjacking, as a subcategory of aggravated robbery, decreased by 0.9% in the second quarter of 2024, compared to the same period last year.

While the decline is encouraging, Kemp says the fact that 5,438 carjacking incidents occurred in 2024 is still alarming as the number of carjacking incidents has exceeded 5,000 annually since 2021. Furthermore, 46% of carjacking incidents involve sedans, hatchbacks and coupes, alarmingly the vehicles most car owners drive.

Potholes and other risks on the road

“Another factor making life difficult for car owners is the deteriorating condition of road infrastructure. The AA has attributed much of the country’s dangerous road safety record to the poor condition of roads in several provinces.

“Lack of maintenance and the increasing number of extreme weather events have wreaked havoc on many of the country’s highways and heavily used roads.”

Kemp says these findings paint a picture of a travel environment that is becoming increasingly dangerous for car owners. “This reality, coupled with the tense economic climate, has placed many South Africans under unnecessary financial pressure. Many people simply cannot afford the cost of repairs or full replacement if they become the victim of a car-related crime or are involved in an accident.”

When you need it most, car insurance can alleviate much of this financial burden, he says. “By choosing your auto insurance carefully and working closely with your advisor, you can ensure you get the coverage you need to suit your unique situation and budget.”

What to consider when choosing your coverage

To choose the right car insurance policy, you need to carefully weigh the benefits and costs of the different options, he says. Although the nature and extent of insurance cover will vary from insurer to insurer, limited cover options generally include only third party cover and cover for specific events such as fire, theft and hijacking.

“Public liability cover is paid in the event that a third party makes a claim against you for loss or damage he or she has suffered as a result of your actions. For example, if you are responsible for a car accident, the third party is the other person whose car is damaged or destroyed in the accident.

“However, third party liability insurance does not cover your damages if you are involved in an accident. In other words, any damage to your own car or other property is not covered and you will have to pay for it out of your own pocket.”

Some policies only cover fire, theft and hijacking

He also points out that policies that cover certain events, such as fire, theft or hijacking, only provide coverage for the events listed in the policy, which are also subject to certain conditions.

“These limited types of policies may be attractive to you if you have an older vehicle with a low value that is being paid off and/or if you don’t drive your car very often or very far. Limited coverage is generally cheaper than comprehensive insurance, but in many ways the benefits of comprehensive insurance far outweigh the costs.”

Kemp says comprehensive auto insurance provides comprehensive coverage that protects against damage to your vehicle from collisions and non-collisions, such as theft, vandalism, fire or natural disasters.

“It also covers repairs or replacements if your car is damaged by animals or falling objects. This type of policy provides peace of mind by providing broader protection than basic liability insurance, reducing the financial burden of unexpected incidents.”

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The sales value of your car compared to the market value

After you’ve decided what type of car insurance you need, you need to decide what value you want to insure your vehicle at. The TransUnion retail value of a car is the average price for which a car dealer would sell it.

Because of this, Kemp says that if your car is insured for TransUnion retail value, it may not be insured enough to replace it with a comparable make and model in the event of theft or complete write-off.

“The market value of a car, on the other hand, is equal to the price you would probably get for it if you were to sell it privately. This value takes into account a number of variables, including mileage, vehicle condition, maintenance history and prevailing market conditions.”