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Car Insurance in South Africa – What You Need to Know

Car insurance is one of the most important types of short-term insurance you can have because there is a certain degree of risk that comes with owning your own car.

What’s more is that repairing or worse, replacing a car, can be extremely costly and if you are not insured, you will need to dig into your own pocket or savings to pay for damage or loss. When it comes to achieving financial stability (whatever that may look like to you), this can set you back months, if not years.

In this article, we discuss car insurance in South Africa, what it covers, and why you should have it.

benefits of car insurance

What is Car Insurance?

Car insurance is a type of short-term insurance which covers loss or damage to your vehicle. In some instances, car insurance can also cover you as the driver, but this will depend on the type of policy you choose.

What Does Car Insurance Cover?

As with all insurance policies, the type of cover you get depends on your needs and the type of policy you choose. You will need to look at what you would like to cover and then select a policy which meets those needs.

However, generally speaking, car insurance can cover the following:


Whether you misjudged the width of your driveway or were in a more serious accident, car insurance covers the costs involved with repairing the damage or replacing a car that has been written off (vehicles are written off when it will cost less to replace the vehicle than to repair the damage). If you cause an accident, your car insurance will also cover repair costs for the other vehicle.


The sad reality is that car theft is rife in South Africa and at any point, your car is unfortunately at risk of being stolen. This is an extremely traumatic thing to happen to anyone, and things will be worse without car insurance. However, be sure to choose a policy that covers theft. Car insurance that covers theft usually pays out the market value of your vehicle at the time it was insured.

Fire and Hail Damage

In some parts of South Africa, hail is a common occurrence and has been known to cause serious cosmetic damage to vehicles that are not parked undercover. There are other parts of the country that are prone to serious wildfire and although car insurance cannot help you avoid these catastrophic events, it can help you cover the repair costs.

Roadside Assistance

Although roadside assistance does not come standard with all car insurance policies, it is often an optional extra which can be hugely beneficial to all car owners. Not everyone learned how to change a tire when they were children, and a flat tire is around almost every corner. Maybe you are the kind of driver that doesn’t always keep their fuel tank full and running out of petrol on your journey is not unusual. If you are driving an old car that enjoys regular visits to the mechanic, you are probably one journey away from a roadside breakdown. Either way, roadside assistance is there to come to your rescue.

Olemera Financial Services – Financial Planners Johannesburg

Personal financial planning is all about protecting your capital and finding smart ways to avoid having to pay serious bills using your salary or life’s savings.

Owning a car is risky business and driving it around increases the risk of something going wrong. Car insurance is there to cover you if something bad happens to your vehicle.

Not sure which car insurance company to choose or what policy is best for your needs? Speak to our financial planners in Johannesburg for assistance.

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