Having your own set of wheels makes getting from point A to point B much faster and easier. However, along with the convenience that comes with being a car owner, road risks are all too real and you need to make sure your car insurance is road ready.

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 gaining a good understanding of the risks and what can be done to proactively manage them. Making sure you have adequate cover will give you much-needed peace of mind that if the unexpected happens, you’ll have the financial solution you need to keep your wheels on the road.”

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Road hazards: know the facts and figures

Conformable Sanral’s latest reportthere are over 800 000 road accidents in South Africa each year – on average around 2 200 accidents every 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 practice safe driving can be affected by fellow drivers who are careless and reckless.

Additionally, the South African Police Service found that car theft, 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 drop is encouraging, Kemp says the fact that there were 5,438 carjacking incidents in 2024 is still alarming, given that carjacking cases have topped 5,000 year-on-year since 2021. hatchback- cars and coupes, which are alarmingly the vehicles most car owners drive.

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Potholes and other road hazards

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

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

Kemp says these findings paint a picture of an increasingly dangerous road travel environment for car owners. “These realities, coupled with the strained economic climate, have placed many South Africans under undue financial pressure. Many people simply cannot afford the cost of full repairs or replacements if they become victims of car-related crime or are involved in an accident.”

When you need it most, car insurance can ease much of that 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 for your unique set of circumstances and budget.”

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What to consider when choosing your cover

To choose the right type of auto insurance, you need to carefully weigh the benefits and costs of different options, he says. While the nature and extent of insurance coverage will differ from insurer to insurer, limited coverage options typically include third party only coverage and coverage for specific events such as fire, theft, and hijacking.

“Third party liability cover 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 responsible for a car accident, the third party would be the other person whose car is damaged or destroyed in the process.

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

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Some policies only cover fire, theft and misappropriation

Likewise, he points out, policies that cover certain events such as fire, theft or hijacking will only provide coverage for the events listed in the policy, which will also be subject to certain terms and conditions.

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

Kemp says comprehensive auto insurance provides extensive coverage that protects you against damage to your vehicle due to 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 provides peace of mind by offering broader protection than basic liability insurance, reducing the financial burden of unexpected incidents.”

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Your car’s retail value compared 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 a car dealer would sell it for.

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

“In contrast, the market value of a car equates to the price you would likely 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.”