Vehicle accidents are unpredictable and unexpected. Thus, you (and our middleman) ensure that you are covered should the unthinkable happen. By taking out a vehicle insurance policy, you protect yourself from the costs to fix your damaged vehicle or, in the worst case, replace it.

 

So, why should you be concerned about third-party cover? For one, if your car is an old model or low in value, you might want to consider an alternative or more affordable option than comprehensive vehicle insurance. Moreover, it’ll provide you with the needed financial protection should you accidentally damage someone else’s property.

 

But, before you decide to take out third-party insurance, read the answers to these frequently asked questions.

 

What is third-party vehicle insurance?

 

This is a vehicle insurance policy that provides the financial protection (up to the amount stated in your policy document) for any accidental damage your vehicle does to another person’s property. This means that if you accidentally drove into someone’s wall or car, they can claim through your insurance policy to repair the damages, and you’ll only have to pay the excess.

 

Who is the third party?

 

The third party is the person or company who’s belongings were damaged and suffered loss. The insurance claim will be paid out to them. In an insurance claim, you, the policyholder, are described as the first party and your insurer is the second party, the claim will be submitted to them.

 

What is not covered by third-party insurance?

 

Any damage to or loss of your vehicle and property are excluded from this cover. Although you will be able to claim for the damage you caused and be liable for the excess, the damage to your own property will need to be taken care of by you. Remember, if you are not the cause of the accident, you can claim against the person who is responsible.

 

How does a third-party insurance policy compare to the Road Accident Fund (RAF)?

 

While a third-party insurance policy will provide you with the financial cover needed to replace or repair a third party’s property, their physical and mental wellbeing is not. This is the RAF’s role. The RAF covers a party’s personal injuries and trauma caused by a road accident.

 

Up to what amount am I covered?

Each insurance policy is different. Thus, it’s imperative that you discuss this policy thoroughly with your insurance advisor.

 

What does the law say about third-party insurance?

 

Although it’s not mandatory that all vehicle owners should have third-party insurance, it might still happen. According to Hippo.co.za, the South African Insurance Association (SAIA) called for mandatory third-party vehicle insurance in 2011. They reasoned that if all the vehicles on the road are insured, there will be more funds available to repair the damaged vehicles and insurance premiums should be lowered.

 

Speak to your Indwe advisor today about your third-party vehicle insurance needs. Call 0860 13 13 14 or visit www.indwe.co.za to contact your middleman.

 

Indwe is an Authorised Financial Services Provider. FSP 3425