Personal insurance: The fundamentals that you need to know about car and home insurance

The unexpected can happen in an instant; a car accident or house fire can leave you financially and emotionally devastated. Insurance is there to manage uncertainty, protect you when things don’t go as planned and give you peace of mind.

There are many types of personal insurance, we discuss two of the main types below.

Car insurance

While not mandatory in South Africa, this type of insurance is highly recommended. The country has a high vehicle accident and theft rate, and a lot of drivers don’t have car insurance, which is why you should do everything you can to protect yourself should an accident happen.

If you’re using car finance to help with your purchase, the financial institution will require you to take out car insurance. There are many factors that influence the premium you will pay, from your age and driving experience to the car model and where it is parked.

There are three main types of car insurance in South Africa:

  • Third party only. Your premiums for this insurance are significantly lower as it offers you the least protection. If you are involved in an accident, this insurance only covers the damage caused to the other parties’ property. You will have to cover the costs of damage to your car from your own pocket. Third-party is a good option if you drive an older car and don’t clock up a lot of mileage.
  • Third party, fire and theft. With this basic form of insurance, you are protected from loss or damage caused by fire, theft or hijacking. You are covered for damage caused to another person’s vehicle as the result of an accident, but you may not claim for accident damage caused to your own vehicle.
  • Comprehensive. As the name suggests, this covers you for all the bells and whistles, which also makes it the most expensive cover. You can claim for any accident damage caused to your own vehicle and you can claim if it’s stolen. This also covers the damage caused to other parties’ property if you caused the accident. Comprehensive insurance is best suited to new and expensive cars or if you spend a lot of time on the road.

Home insurance

There’s likely no bigger investment you will make during your lifetime, than buying a home. Wouldn’t you want peace of mind that if disaster strikes, you can replace or repair what has been damaged?

Local law doesn’t stipulate that you need property insurance if you own a home, but most financial institutions will only give you a home loan if you take out buildings insurance on the property.

There are two main types of insurance that homeowners in South Africa can consider:

  • Building insurance or homeowners insurance. This policy specifically covers the building itself, and some fixtures on the property such as garages and boundary walls, against accidental loss or damage caused by fire, theft or natural disasters like floods. It can cover permanent fixtures in your home including toilets and fitted kitchens but it does not cover the contents of the home.
  • Home contents. This covers the possessions found inside your home and includes anything that can be taken with you when you leave. From curtains and appliances to clothing, these items are protected under this policy against incidents like theft, fire, malicious damage and natural disasters like storms and floods.

Life is full of surprises – not all of them are welcome! But, when you have insurance, it helps you build a more secure future and enjoy life today, knowing that you can handle whatever curveballs come your way.

Looking for advice or information about personal insurance? Chat to the Indwe experts today on 0860 13 13 14 or visit

Indwe is an authorised Financial Services Provider FSP 3425

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