What's the Difference? Choosing Between Comprehensive Car Insurance and Third-Party Insurance

Let's face it – in South Africa it feels like we’re always playing a game of catchup when it comes to our expenses vs what our salaries cover. So, the question is, how can we save our salary?

Lowering your insurance premiums is one way of doing this, and it’s especially easy to do when you use Hippo. We give you up to 11 car insurance quotes side by side so you can choose the best option.

Another option is to opt for third-party only insurance, which costs less than comprehensive insurance. However, it also means less cover, so you’ll want to understand the difference. If this is something you’re considering, here’s what you need to know:

Comprehensive Car Insurance

You can probably work it out from the name, but comprehensive insurance cover is the most extensive type of insurance policy (often with higher premiums) that you can take out for your vehicle in South Africa.

It’s an all-inclusive option that protects your car in a variety of scenarios, including theft, hijacking and other loss, accident damage and intentional damage like vandalism (hey, it happens), as well as fire and some natural disasters, like random hurricanes or a hailstorm.

It also includes cover for theft and legal liability for any damage that you might cause to someone else’s vehicle if you’re involved in an accident.

Because it covers all sorts of incidents and claims, a comprehensive car insurance policy usually costs more than other types of car insurance. It’s also the one that most banks or other companies who give you a car loan will need you to have if you’re paying off your vehicle.

That said, it doesn’t usually pay out to fix everyday wear and tear. Many insurance providers offer car insurance extras, like scratch & dent or tyre & rim cover, that you can add on to your comprehensive policy. If you're looking for cheap car insurance, this usually isn't the first go-to.

Third-Party Only Insurance

Also known as liability-only insurance, third-party cover in South Africa is the most limited form of vehicle insurance. It only covers damage that you cause to another driver’s car because of a car accident.

In addition, third-party insurance won’t pay out to repair damage to your vehicle. It won't pay out if your car gets stolen or hit by hail either 🫤.

When it comes to paying insurance premiums, this is the cheapest option. But it’s important to keep in mind that you’ll be paying out of pocket if you need to repair or replace your vehicle due to an accident, theft, or a variety of other not-so-lekker incidents.

Third-party only insurance can seem like a cost-saving option over comprehensive insurance, but a situation involving your car could end up costing you more than you bargained for.

Another Option: Third-Party, Fire and Theft Vehicle Insurance

Third-party, fire, and theft insurance sits right between comprehensive insurance and third-party insurance in affordability and benefits.

This protects you from liability if you cause damage to another driver’s car. It will also cover your car for loss or damage because of fire or theft. But it doesn’t include protection for accidental damage caused to your own vehicle. So best to treat your ride like it's made of glass with this one.

This means that third-party, fire and theft cover has lower premiums than comprehensive vehicle insurance but higher premiums than third-party only insurance.

It’s a good choice if you want some protection for your own car but are also willing to accept some risk to lower your monthly premium.

The Bottom Line

While third party insurance offers the lowest level of cover, it’s still better than having NO insurance at all.

Imagine you’ve just side-swiped someone’s brand-new Mercedes Benz. With third party cover you won’t be covered for your own vehicle repairs, but at least you’ll know your insurance will sort out the irate Benz driver.

That’s a lot better than having to foot both bills – something that could be financially devastating. And luckily, with Hippo, you’ll be able to find the best deal on ALL types of car insurance.

Make the Right Choice with the Hippo Car Insurance Comparison Tool

Our easy-to-use comparison tool gives you a variety of car insurance quotes with different levels of protection to help you see the difference between third-party insurance and comprehensive insurance. You can see how much third-party, fire and theft cover is, too!

Get quotes side by side to compare monthly premiums and excess so you can find the policy that suits your needs—and your wallet.

This article is for informational purposes only and should not be construed as financial, legal, or medical advice.