All South Africans need car insurance

Statistics show that South Africa is one of the countries with the highest accident rate on its roads and that you are more likely to have your car stolen here that in any other country. This is why it is imperative that all South Africans that are car owners have car insurance.

Due to the current economic situation in the country not everyone who needs car insurance can afford it. However, by doing proper research you will be able to find the perfect and most affordable car insurance for your needs.

If you don't feel confident enough to do all the insurance research yourself, you can get the help of an insurance broker. They usually represent a few large insurance companies and should be able to find the right product for you.

It is important that you pick a broker that belongs to a specific brokers' association and that your friends and family can recommend this person, knowing all this you will be able to rest assured that the broker only carries your best interests at heart.

While you look at the various options available, your broker needs to go through all the legal matters, monthly installments and any additional fees. If they add a monthly policy fee it should be less than 10 percent of what you pay per month. You pay this fee for the advice and assistance of your broker, so you should be happy with the service your broker provides. Be wary of any additional costs, some brokers will milk you for all the money you have.

When it comes to basic car insurance you have three options; comprehensive cover, third party fire and theft and third party only.

Let's have a closer look at your options.

Comprehensive car insurance

This form of insurance is probably the best and the most expensive. It offers you extensive cover against damage, theft and accidents. It also covers any damage caused to other cars by you.

Third party and theft car insurance

This option offers you cover against theft and any damage you caused to other cars. Unfortunately, you are not covered for any damage caused to your car.

Third party only car insurance

This is the least amount of cover you can get; this option will only cover any damage you cause to other cars.

When deciding on your monthly premium, car insurance companies will look at the following factors: Age, level of experience and previous insurance claims. If you are an older, more experienced driver with no previous claims, you will have a lower monthly premium.

Lastly, something most of us forget to do is to adjust our insurance every year to account for the decrease in your car's value. This is important and also a good way to save on your car insurance. If your car gets stolen the insurance company will only pay out the value of the car when it was stolen, not the value of the car when you first bought it.