When a person purchases motor car insurance, they actually purchase what is called an “insurance policy”. This policy is specific to each individual as it is determined by the individual’s profile, car and preferences with regards to the levels in which the policy will cover the person. The person taking out a motor car insurance policy with the insurance company can choose the levels of cover which, inter alia, include: Liability cover This is when the car insurance company will pay for the injury (in the form of medical expenses, pain and suffering and lost wages) of the people in the vehicle during an accident of which the driver (the policy holder) is liable.
Any property damaged during such an accident is also to be paid for by the motor car insurance company. Collision cover This is the cover that will enable the car insurance policy holder to claim from the motor insurance company for any damages sustained by the vehicle (that is covered in the insurance policy) during an accidental collision with another vehicle or object. Comprehensive cover Comprehensive cover is the coverage by the motor insurance company that pays for the loss and/or damage sustained by the vehicle that is covered in the insurance policy NOT due to an accident. So this cover will include items such as theft, loss due to fires and natural disasters, damage due to vandalism etc.
Uninsured motorist coverage Such cover assists in the case where the vehicle sustains damage which was the fault of an uninsured driver. It can be further extended into “Underinsured motorist cover”, which pays for the damages of the vehicle in the case of an accident caused by a driver who does not have sufficient motor car liability insurance Third party cover Third party and theft refers to the motor car insurance cover level which covers the policy holder in cases where the insured party was the “third party” in the damages caused to someone else. In other words, this level of cover specifically caters for the damages that the policy holder caused to someone else and/or their property. This kind of cover does not provide for the damage that the policy holder incurs on his/her own car.