The type of insurance you get for your vehicle depends on the type of vehicle you own. While all types of insurance for a vehicle fall under three general categories, namely third party, third party, fire and theft and comprehensive, there’s more to it than that. Everyday sedan and hatchback vehicles, for example, can be covered by a standard vehicle insurance policy, while off-road vehicles require 4×4 insurance. Here’s a list of types of vehicle insurance and why you may want to consider taking out one of these policies for your vehicle.
Insurance for an off-road vehicle
The risks covered by a standard vehicle insurance policy will not cover the risks of going off-road. Off-road cover, or 4×4 insurance, covers accidental damage, write-off and repatriation of your vehicle; all high cost items. What’s more, 4×4 insurance covers the vehicle for most countries in the SADC region, whereas standard vehicle insurance does not.
Insurance for a classic vehicle
Given the high value of sports and classic vehicles, most everyday insurance companies will not cover them. The risk of loss or repair is too high, given that these would need to be repaired by a specialist. In fact, even specialist insurance companies limit the number of kilometres they cover classic vehicles for per year to limit their risk. The value of these vehicles also increases with age, which is contrary to the average depreciation of other vehicles. Different underwriting principals are applied to investments as are applied to assets (which are only covered for their amount at the time of loss or damage).
Insurance for a motorbike
Motorbikes are high-risk, which means they require a different insurance policy to a vehicle. In fact, until recently, most insurance companies refused to insure motorbikes. Now they’re covered for comprehensive damage, as are accessories and biking gear and equipment.
Separate insurance policies exist for caravans, mobile homes, trailers and watercraft as the risks facing each of these are different to those facing normal vehicles. If you would like to compare policies for any of the above, fill in our online form and an insurance representative will call you soon.