Types of Cover for Car Insurance
Insurance is the promise an organization makes to reimburse you for any losses your policy covers in return for a small payment called a premium. Car insurance protects a car against any anticipated losses such as accidents, natural calamities, theft, and more. There are many types of cover available in auto insurance. These include:
A List of the Types of Cover Available for Car Insurance in South Africa
1. Property Damage Liability (PD or PDL).
This covers liability (up to the limit amount) against damage of the third party’s property, be it their car, house, fence, etc. It’s considered one of the most basic types of car insurance in South Africa and is usually the most affordable when you get it on its own.
2. Bodily Injury Liability (BI or BIL).
This type provides protection against the liability of damage caused to other people physically or financially.
3. Comprehensive Coverage.
This type of cover provides protection for one’s automobile in the event of fire, theft, or any other natural calamity. It helps you cover the cost even for the smallest damage caused to the insured car.
4. Collision Coverage.
This type protects you when the damage is caused by another car or object. The terms you agree to when you sign the policy can limit the cover you get. Some policies will give you more cover and others less.
5. Uninsured Motorist Bodily Injury (UM or UMBI).
This type provides coverage when damage is caused by a third party that is not insured. It covers the financial loss of vehicular damage, but it also covers any other physical loss.
6. Underinsured Motorist Bodily Injury.
This type of cover gives the insured protection in case the third party who has caused the damage is not adequately injured. In this case, it covers all those who were in the car.
These are some of the basic types of cover car insurance. The most important thing to pay attention to is the terms of the agreement. Any ambiguity will not let you claim your due from your insurance.
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