Having your own set of wheels makes getting from point A to point B much faster and easier. However, despite the convenience of owning a vehicle, the risks of the road are also very real and you should make sure that your vehicle insurance is 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 prevent the financial consequences of car damage or loss, but with so many options, choosing the right policy can be daunting.

“The key to making the most informed decision is to have a good understanding of the risks and what can be done to proactively manage them. Ensuring you have adequate insurance will provide you with much-needed peace of mind that you will have the financial support you need to keep your wheels on the road should the unexpected occur.”

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Road risks: Get the facts and figures

Accordingly Sanral’s latest reportThere are more than 800,000 road accidents every year in South Africa; This means an average of around 2,200 accidents every day. Most of these accidents are caused by excessive speed and drunk driving.

Kemp says the unfortunate reality is that even responsible drivers who obey speed limits and practice safe driving can be affected by careless and inattentive drivers.

Additionally, the South African Police Service found that car theft, 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 it’s still concerning that 5,438 car thefts will occur in 2024, considering car thefts have exceeded 5,000 annually since 2021. Additionally, 46% of carjackings involve sedans. Hatchbacks and coupes are the vehicles that worryingly most car owners drive.

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Potholes and other road risks

“Another factor that makes life difficult for vehicle owners is the deteriorating state of the road infrastructure. The AA attributed much of the country’s dodgy road safety record to the poor condition of roads in several provinces.

“Lack of maintenance and increasing extreme weather conditions have wreaked havoc on many of the nation’s highways and heavily traveled roads.”

Kemp says these findings paint a picture of an increasingly dangerous road travel environment for vehicle owners. “These realities, combined with the tense economic environment, have placed many South Africans under extreme financial pressure. Many people 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.”

He says car insurance can alleviate much of that financial burden when you need it most. “By choosing your car insurance carefully and working closely with your advisor, you can ensure you get coverage that fits your unique circumstances and budget.”

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What should you pay attention to when choosing your cover?

To choose the right type of car insurance, you need to carefully weigh the benefits and costs of various options, he says. Although the nature and extent of insurance coverage varies from insurance company to insurance company, limited coverage options generally include only third-party coverage and coverage for certain events, such as fire, theft, and kidnapping.

“Third party liability coverage will be paid if a third party makes a claim against you for loss or damage suffered as a result of your actions. For example, if you are liable for a car accident, the third party would be the other person whose car was damaged or destroyed in the process.

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

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Some policies only cover fire, theft and theft

Likewise, it states that policies covering specific events such as fire, theft or kidnapping will only cover events listed in the policy and this will be subject to certain terms and conditions.

“These limited policy types may be attractive to you if you have an old, low-value, well-depreciated vehicle and/or you do not drive the vehicle very often or very far. Limited coverage is generally less expensive than a comprehensive insurance policy, but in many respects the benefits of comprehensive insurance far outweigh the cost.”

Kemp says comprehensive car insurance provides comprehensive coverage that protects your vehicle against damage from collision and non-collision events 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 offers broader protection than basic liability insurance, providing peace of mind and reducing the financial burden of unexpected events.”

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Retail price of your vehicle according to its market value

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

Therefore, Kemp says, if your car is insured for TransUnion retail value, it may not be sufficiently insured to replace your vehicle with a similar make and model in the event of theft or total write-off.

“In contrast, the market value of a car is equal to the price you would probably get if you sold it privately. “This value takes into account a number of variables, including mileage, vehicle condition, service history and prevailing market conditions.”