Third party motor insurance is not usually the recommended choice of cover for many reasons. Fundamentally, third party cover does not take care of a large range of actual risks that you face while on the road. The car owner bears bigger risks in case some events happen. However, the third partly policy can actually be a smart car insurance choice in certain circumstances.
1. You are Broke
Life happens to all of us. It may be possible that just when you need to pay for your premiums, you realise you are out of cash to buy the much coveted comprehensive cover. A third party cover can hold fort for you until when you can afford to pay for a comprehensive cover. Talk to your insurance provider in advance, about whether you can upgrade your cover later. The dumb thing to do is to remain without any form of insurance because for the time being, you are unable to afford a comprehensive cover. If you are broke, buying a third party cover is the smart thing to do.
2. Your Car is Older Than 15 Years
Most insurance companies have a 15-year ceiling when it comes to offering comprehensive cover for a car. Some companies actually have a lower ceiling limit. In some cases, you can negotiate your way into a comprehensive cover with your insurer especially of you have a good claims record. In addition, if you have a vintage car that is well kept, one that you can present at the Concours D’Elegance, you can negotiate for comprehensive cover. If for any reason you cannot access the comprehensive cover based on the age of your car, then think about a third party cover.
3. Your Vehicle is Only Driven Within an Institution
It is illegal to drive an uninsured car. What if the vehicle never leaves your premises? Do you need insurance for it? The answer is straightforward. A car is a machine that can cause accidents even within the confines of an institution with a 15 KPH speed limit. Therefore, there is need for a cover to protect the people who interact with the car. However, if there is zero risk of the car being stolen, vandalised or being involved in a major accident, there is no point in buying comprehensive cover. Under these circumstances, it may actually be a smart thing to buy third party insurance for this car, or truck.
4. Your Car is in Storage
You may have put your car in long-term storage, erm… parking. If you will not use your car for an extended period, and you can securely store it, then there is no point in paying for comprehensive cover for it. Your car may not need to go on the road any time in the near future if you have new posting out of town that comes with a car, or if you have several cars, and are out of the country often. Recreational cars may also fit in this category. It would be a smart thing to buy third party cover for the car for the period you will not be actively using it.
Get more insurance insights on InsureAfrika