Used Car Guide

Vehicle Shortfall Cover is also known as Credit Shortfall, Shortfall Policy, Shortfall Insurance, Shortfall Protection, Top-up Insurance, Gap Insurance, and a variety of combinations. When purchasing a car there are various things to consider. Car insurance and financing are important at the initial point of buying and one that most of us know and understand enough of. unfortunately, like most moveable possessions, cars can be stolen, and not only, that they can be involved in an accident and written off. Vehicle shortfall cover will cover the difference between the car’s retail value and the amount you still owe on your loan. The advantage of buying a second-hand car over a brand new car is that the value of the new car you just bought will drop substantially the moment you drive it out of the showroom door. Sadly for the new-car owner, while it’s now worthless, the monthly instalments remain the same. How Does Shortfall Cover Work? The shortfall amount is the amount that would be paid out to the financial institution with which you took out a loan to settle the outstanding amount owed so that it doesn’t have to come out of your savings. The best way to explain how shortfall works is with an example: a) You purchase a vehicle and finance it through a bank for the amount of R100,000. b) You pay a deposit of R20,000 against the loan amount. c) You have an accident and the car is written off. d) Your insurance company only pays out the current retail value, which is now R60,000 to the bank. e) You still owe R80,000 on the vehicle. f) The shortfall amount is R20,000. g) If you have shortfall cover, the R20,000 will be settled and paid to the bank. If not, R20,000 will have to come out of your pocket to pay the bank. Depending on the policy anything over and above this, such as excess payments, charges for payments in arrears, administration and other fees are your responsibility and not included in shortfall cover. Why Get Shortfall Cover? South Africans are found to be very attached to their vehicles, and in fact, four out of ten car owners actually give their cars a name. 37% even indicated they wouldn’t be able to function without it if it was stolen or written off. If you’re buying a new or second-hand car and financing it through a bank or other financial institution, it’s worth considering shortfall cover. With the current accident and crime statistics seriously affecting car owners, it makes sense to be covered for these unforeseen events rather than to keep on paying for a car that is no longer in your possession. A brand new car will depreciate by 15 - 20% in just the first year you purchased it. After five years that depreciation increases by approximately 50%! Unless you have enough money in your savings account, you may struggle to keep up with monthly instalments on a car you no longer own. Crime statistics showed a total of 16,325 car were hijacked in 2017/18. On average, 45 cars were hijacked each day in 2017/18. That’s one every 32 minutes. The loss of a vehicle whether through theft or an accident is traumatic, to say the least. Shortfall cover allows you some room to breathe by not having to think about the debt you owe on your vehicle. Auto Pedigree offers ADCOVER®, where if your claim is successful, will contribute R6,000 towards your access. If you’re looking to cover yourself against shortfall, contact an Auto Pedigree dealer to discuss your vehicle financial risk cover.

‘Lifestyle Protection Plan’ can sometimes be referred to as Risk Cover, Credit Protection, Disability Income Protection, or Critical Illness Cover. The variety of protection plans come in various shapes and forms and differ according to specific offerings. Essentially, they take care of your financial obligations should you suffer a loss of income. This means you will not need to worry about the everyday cost of living expenses such as bills and other financial commitments if you become critically ill or suffer a disability that leaves you unable to continue earning an income. Think of it as a cushion should anything happen to you where you’re not able to continue paying your debts. Benefits of a Lifestyle Protection Plan Illness or disability is a devastating occurrence and can occur when you least expect it. Heart disease and stroke are the biggest killers after HIV/AIDS in South Africa and more die of cardiovascular disease than all cancers combined. According to the Heart and Stroke Foundation South Africa (HSFSA): 215 people die every day from heart disease or strokes, and every hour in South Africa: a) 5 people have heart attacks, b) 10 people have strokes and of those events, c) 10 people will actually die from it. Lifestyle protection becomes extremely beneficial not only to you but to your family too, as it helps you meet your monthly expenses while you focus on recovery back to wellness. With an Auto Pedigree Lifestyle Protection Plan, if you purchased a car and tragedy hits before you’ve finished paying off the instalments, at least you are free from the worry of your vehicle debt. Whether it’s dread disease, a disability, or even if your living conditions change temporarily, such as retrenchment or illness, where you’re not earning an income for a lengthy period, the plan provides peace of mind that your vehicle payments will be covered. For example, you purchase a car and have it financed through a bank. Some months later you fall ill and are unable to continue working. With the Lifestyle Protection Plan you don’t need to worry about the monthly instalments you would normally pay because it will take care of the outstanding amount owed to the bank. Cover in a Nutshell As mentioned, all plans are unique in their requirements and what they cover, however, there are many commonalities. These are examples of what typical lifestyle protection plans cover should any of them happen to you resulting in a loss of income: Retrenchment – Full monthly instalment for a period of time Temporary Disability – instalments for the period Permanent Disability – Total outstanding balance Dread Disease/Critical Illness – Total outstanding balance Death – Total outstanding balance Examples of dread diseases typically covered: Heart attack, cancer, organ transplants, coronary disease (surgery), kidney failure, stroke, Alzheimer’s, and Parkinson'sdisease. In today's circumstances when life is as unpredictable as ever, it makes sense to be prepared. If you’re looking to get lifestyle protection on your car, contact an Auto Pedigree dealer to discuss your needs.

Buying a new car is exciting but also takes a large chunk out of your budget. A brand new car will depreciate by approximately 25% during the first year after purchase. Further to this, fuel prices continue rising and insurance and maintenance costs are on the increase. Combat pricey maintenance costs by following these top ten tips: Read and understand your owner’s manual and adhere to the regular prescribed service maintenance schedules – check brakes, tyres, and transmission fluid and replace when necessary. Schedule additional services if needed to prevent unnecessary and expensive repairs. Prevent a costly engine replacement which can vary between R28,000 and R180,000 depending on the engine’s age, technology, and complexity, by changing your oil and oil filter as prescribed in the manufacturer’s handbook. Over time, oil accumulates impurities that cause engine damage or ultimately failure. Avoid costly engine part replacement and maintain peak performance by changing the air filters every 20,000km or once a year. Ensure your car’s engine lasts for its predicted lifespan by using the oil type and brand specified in the manufacturer’s handbook that best suits your car. Prevent unnecessary expensive paint jobs by caring for your car’s exterior. When new, wash and polish less frequently because this can dull the shine. When you do wash, use quality products that won’t damage the paintwork or leave smears. Preclude highly expensive repair costs by purchasing a warranty or extended warranty. Select an appropriate motor insurance policy to prevent having to pay high repair costs should your vehicle be involved in an accident. Read the Kinsey AA report while budgeting for a new car. It helps you understand the costs of replacing car components, as well as which cars are more expensive to maintain than others. Car parts have shown an astounding escalation between 2017 and 2019, for example, the basket of parts for the entry level Datsun GO increased from R44,372 in 2017 to R63,310 during 2019. Never exceed speed limits as this leads to component stress and excessive wear and tear due to persistent red-lining, hard braking, and fast turns. File service receipts and related information to keep a record of the work that has been done on your car, so that you don’t go ahead with unnecessary repairs. This also increases your cars residual value should you wish to sell it. Save yourself money by following these tips and contact your nearest Auto Pedigree dealer for assistance if you are looking for a good insurance policy or warranty.

Although choosing the right car may be perplexing, protecting it and its long-term usefulness needn’t be. Preserve your investment by understanding the difference between warranties and insurance. The one is a guaranty to replace defective components, the other safeguards the value of the car and protects you against financial loss. Types of Warranties Vehicle warranties are written guarantees by motor manufacturers and dealers to replace or repair defective vehicle components for a given period of time. Policyholders should carefully read and understand the warranty fine print as the cover provided and specifics vary between the various warranties. Here are the most common types: Basic Warranty or Manufacturers’ Warranty – Covers specific components of a new car that must be fixed, where necessary, by the dealer’s workshop free of charge. To keep warranties valid, car owners should only service and repair their vehicles at authorised franchises or dealers. Here are examples of components that are typically covered and not covered by basic warranties. MANUFACTURER WARRANTY COMPONENTS COVERED NOT COVERED Engine Tyre and wheel wear and tear Transmission system Exhausts Fuel and ignition system Catalytic converter Cooling system Brakes Electrics Damage to bodywork Gearbox Glass Steering Headlights Non-friction clutch Audio equipment Brake system parts Satellite navigation system Dealership warranty- These written guarantees are sold by dealerships and used by vehicle owners to ensure their car’s safety, reliability, and roadworthiness, but not wear and tear. They contain stipulations which need to be followed to safeguard cover, for example, required procedures should a component break down. Powertrain warranty- Guarantees the mechanical components of your car that produce kinetic energy, such as, transmission, drive shafts, axle and clutch, but not the engine. Rust and corrosion – Formal assurance that holes in your car’s metal resulting from rust will be repaired. Emissions warranty –Covers your car for emission problems incurred over a specified number of years or distance. Extended warranty or aftermarket warranty- Manufacturers’ warranties only last a stipulated number of years making it important to take out extended warranties. However, these often cover fewer components than the original warranty. Read more: How Car Insurance Works Warranty vs. Service & Maintenance Plans If you’re confused by the difference in warranty cover compared to service and maintenance plans: · Warranties cover inherent faults, defects, and the breakage of specific vehicle parts. · Service plans pay for routine servicing costs including filters, brake fluid, oil, spark plugs, and coolant. · Maintenance plans settle costs associated with component wear-and-tear, for example, the clutch, exhaust, and wiper blades. Common Types of Car Insurance In return for a monthly premium, car insurance safeguards your vehicle’s value and protects you against vehicle-related financial loss. The most common types of cover for damages are: Collision cover forvehicle-related expenses Liability insurance pays for people, property and court costs Comprehensive insurance covers theft, fire, vandalism and extreme weather conditions Medical insurance compensates for injuries sustained in a car accident Insured or underinsured cover pays for expenses caused by other, uninsured drivers in an accident How Reasons for Cancelling Car Insurance and Warranties Differ Insurers have the right to cancel a warranty or insurance if vehicle owners do not adhere to stipulations and conditions. To prevent cancellation or claim rejections: Service your car as stipulated – Although agrace period may be allowed, it’s usually not for long periods or for many more kilometres than agreed. Have your car repaired by registered dealerships – Your warranty can be voided even if you only change your oil yourself. Keep all service records and receipts as proof of proper maintenance. Do not abuse misuse or neglect your car – Only use your car for the purpose for which it was designed, for example, sedans are for tar roads, not dirt roads. Maintain it regularly. Research before upgrading – Researchaftermarketupgrades carefully before installing them as they can cause your warranty to become void. To prevent car insurance cancellation and claim rejections: Pay your premiums timeously. Disclose vehicle and driver details factually as insurance policies only cover the named driver (or drivers) and specified vehicles in event of an accident. Disclose accurately your name, age, insurance, driving, credit, and health history. Don’t drive recklessly especially if your policy includes a “failure to take care” clause as these insurance policies won’t cover you if you were speeding or disobeying a road sign. Secure your vehicle as required as many insurers state that you must take adequate security precautions concerning your vehicle including parking your car in a garage or installing an alarm. Read more: 3 Things You Should Know About Car Insurance As there are numerous ways to protect your car, such as vehicle insurance or component cover, contact your nearest Auto Pedigree dealer for all the various products and services we offer. Disclaimer: This information is for educational, or entertainment purposes only. It must not be construed as advice, legal, financial, or otherwise. We do not make any warranties about the completeness, reliability, and accuracy of this information.

Ideally, when you purchase a second-hand car, it should come with a service history. A vehicle warranty assures you against mechanical failure, where the car fails to function as expected. It provides you with coverage should you need to claim for major repairs from mechanical breakdown. These are 8 important points to understand about vehicle warranties: It is a contract provided by the dealer or manufacturer (in the case of new vehicles) to the buyer when the car is sold. In the case of a new vehicle, the manufacturer warranty guarantees the buyer that should the vehicle not function properly, it will be replaced or the buyer refunded. Not all warranties are made equal – they differ between sellers in terms of the validity period and what is covered. As warranties are valid for a specific time period only, a used car will naturally come with a shorter warranty period or may have expired. The warranty policy must list the functions and components covered. If you buy a used car with an expired vehicle warranty, you can take out an aftermarket vehicle warranty. Warranties do not necessarily cover the full claim amount – be wary of this and consider taking out an extended or top-up warranty. It is not a maintenance policy, which covers you for wear and tear and damages to your car. What is Generally Covered by a Vehicle Warranty? Warrantees and their validity period will differ depending on various factors: The car manufacturer (in the case of new cars) The age of a used car The dealership where you purchased the car What is Covered What is Not Covered Repair of defects within a fixed period of time Repairs as a result of damages from an accident Engine, gearbox, and transmission system Normal wear and tear items such as tyres, brake pads, and clutch Fuel and ignition system Routine services and maintenance Cooling system Repairs due to misuse of the car Electrics Exterior or body panel damage such as dents and scratches Steering and suspension Interior damage such as holes, burns, rips, or broken components Non-frictional clutch Brake system parts 5 Top Vehicle Warranty Tips As mentioned, not all warranties are made equal. Some vehicle warranties will cover almost everything on the vehicle while others will only cover breakdowns or failure to major components of the vehicle. Check the service history of the vehicle – if the vehicle you are purchasing has not been recently serviced, ask your dealer to have one arranged. Ensure repairs or parts replacement is done by an approved service provider or your warranty will be deemed invalid. Notify the dealer or manufacturer as soon as you discover a defect – both by phone and in writing. Make sure you service the car within a certain period of time or mileage. Read the terms and conditions – if you understand your warranty and follow the rules, you won’t be caught off guard without cover where you thought you were covered. Where you buy your second-hand car matters. Auto Pedigree vehicles come with proven service history and a stringent 116-point check, so you are assured of driving home a quality used car that is affordable. Once your manufacturer car warranty expires, you can take out an extended warranty such as the Auto Pedigree ultimate care warranty. This will provide continued peace of mind in the event of mechanical or electrical breakdown. Disclaimer: This information is for educational, or entertainment purposes only. It must not be construed as advice, legal, financial, or otherwise. We do not make any warranties about the completeness, reliability, and accuracy of this information.

With the high cost of car repairs, when it comes to buying a used car, you always want to be able to see a proven service history, or risk spending a lot more money than you bargained for. In an older car, because the originalmanufacturer’s warranty may have likely expired, mechanical breakdown warranty can protect against the cost of parts and labour incurred by mechanical and/or electrical failure when your car breaks down unexpectedly. These are important facts to note when purchasing a mechanical breakdown warranty: Unlike an extended warranty where you pay a lump sum upfront, mechanical breakdown cover is paid in premiums over the finance/policy period. Comprehensive car insurance covers you for road accidents and not breakdowns. Mechanical warranties cover you for breakdowns unrelated to an accident. Amongst other areas, it does not cover:Everyday wear and tear such as work tyres or brake pads Long term wear and tear such as corrosion Intentional damage Damage due to poor maintenance Incorrect use of the vehicle What Components are Covered? Components covered depends on the insurer, but to gain maximum value from your warranty, you should have car your car serviced regularly at a registered manufacturer appointed dealer or RMI registered facility. Auto Pedigree Ultimate Care Warranty covers the following:* Engine Gearbox, Differential Differential Lock, Transfer Box, Turbo or Compressor Assembly, Management System Casings, Electronic Ignition, Air-Conditioner, Cooling System Suspension, Wheel Bearings, Braking System, Fuel System, Electrical Components, Electrical Winch, Free Wheel Hubs, Prop Shaft (Drive Shafts), CV Joints, Steering Mechanism, Clutch, Radiator Emission Control Cylinder Head Gasket, Drive Pulleys, Cambelt Failure Viscous and Electric Fans Electric Motors (Sunroof and window), Electric Mirrors, Central Locking GPS Navigation System, Entertainment System, Phone System, Transponder Key, Alarms and Immobiliser Additional Benefits: Vehicle Hire, Overnight Accommodation, Instalment Payment Protection, Insurance Excess Payment, Public Transport Strip and Quote *Please refer to the policy wording for a detailed list of all components covered. If your car’s warranty has reached its validity, avoid the high cost of mechanical or electrical repairs in case of a breakdown. Contact us on010 593 9505, or find your nearest Auto Pedigree dealer for a quote. Disclaimer: This information is for educational, or entertainment purposes only. It must not be construed as advice, legal, financial, or otherwise. We do not make any warranties about the completeness, reliability, and accuracy of this information.

As a young driver, what are the benefits of vehicle insurance, and is it necessary to spend money on insurance at all? If you’re 25 years of age or younger, car insurance premiums tend to be higher than for drivers 30 years and older. But what causes these higher rates and what can you do to decrease them? 5 Factors influencing car insurance premiums Age – People 25 years of age or younger are considered less experienced drivers. Insurers may also impose an additional excess over and above the basic excess for young people driving a vehicle valued at R500,000 or less. Lifestyle – Young people tend to travel more frequently on the roads at night, which can be more dangerous. After dark is often when drivers tend to be more reckless, driving under the influence of drugs or alcohol, and speed more because there are fewer cars on the road. Credit ratings – A poor credit history or lack of one will result in higher premiums. Paying your insurance and credit accounts on time will help you build a positive record and diminish your premiums. Gender – This is an important rating factor because statistics prove that female drivers have fewer accidents than males. 11 Insurance Tips for Under 25s Although age counts against you in terms of the cost of car insurance at this stage of your life, here are ten hints to help you save money: Be self-disciplined – Having a higher excess can save on premiums but exposes you to greater risk. If you are disciplined, you can mitigate against this risk through self-insurance by saving the money you would have paid for more expensive cover. This savings can be used to pay for excess in case of an accident. Shop around – Research and compare various insurance companies to find the one that best suits your budget and requirements. Build a profile – Register your car insurance in your own name as soon as possible as this helps you build an insurance profile which helps with savings on premiums within three years. While it may save on premiums to register under a parent’s name, claims will be rejected. Begin with what you can afford – If comprehensive insurance is too expensive, take out third party insurance which only covers damage to the other cars involved in a collision with you. Although this is riskier as your own vehicle won’t be covered in an accident, you will be able to start building an insurance record and can upgrade as soon as you have the budget to do so. Build a good record – Your driving experience and claims history are two important factors when calculating insurance premiums. Safe driving will help build a good driving record and lower your car insurance premiums. Ensure security – Be mindful whenever you park your car that it is parked in a safe location as much as possible. This, and installing security features like tracking devices will help lower your premiums. Pay-as-you-drive – If your mileage is low, some insurers offer a pay-as-you-drive option, allowing you to pay lower insurance premiums if you spend less time on the road. Avoid aftermarket additions – Items like boot-spoilers, wide rims, and expensive sound systems can affect a car’s performance as well as make it more attractive to thieves, and ultimately increase your insurance premiums. Enhance your driving skills – Invest in an advanced driving course to improve your road safety skills and potentially even bring your premiums down. Consider a smaller engine – because of their lower speed capability, insurers deem cars with smaller engines safer and will charge lower premiums to cover them. Combine car and home cover – As you build your insurance record, it pays you in the long term to cover your car, household, and other valuables under one policy. If you’re looking for an affordable quality used car that will give you long-lasting peace of mind, Auto Pedigree has over 65 dealerships countrywide. With a wide range of makes and models to suit a young driver’s needs, we also provide excellent comprehensive car insurance, as well as a range of other vehicle covers, all under one roof. Disclaimer: This information is for educational, or entertainment purposes only. It must not be construed as advice, legal, financial, or otherwise. We do not make any warranties about the completeness, reliability, and accuracy of this information.

Car owners are not legally required to take out car insurance unless the car was purchased with a loan from a bank or other financial institution. Some drivers rely solely on Road Accident Fund cover but claims are often processed slowly, outcomes may differ from what is expected, and cover is limited. Expenses for medical and funeral costs are covered and so is compensation when a breadwinner is killed due to another driver’s negligence. However, no cover is provided if a driver is sued for damages to another person’s property or vehicle. Why Get Cover? Accident statistics are a good indicator of the importance of being covered, regardless of whether your vehicle purchase is being financed or not. Recent estimates show that 65 - 70% of the approximately 12 million vehicles on South Africa’s roads are uninsured. It is also estimated that at least 14 million families face a combined insurance shortfall of almost R29 trillion if the main breadwinner were to become disabled and unable to generate an income any longer. Consider the following road accident statistics : Annual deaths – Around 15,000 per year (over 40 per day). Deaths over the past decade – Over 134,000. The number of accidents – Close to one million reported annually. Disability – An average of 20 people left permanently disabled per day. National car accident costs - Road accidents cost South Africa R142.95 billion per annum, which is 3.4% of South Africa's (GDP) and much higher than the 2.2 GDP cost for similar countries. Accident cost breakdown – The Gauteng Roads Department confirmed that total crash costs can be broken down as follows:- Human capital: 69.3% Vehicle repairs: 14.9% Related incident costs 15.8% What Car Insurance Do I Need? Statistics prove that driving can be dangerous, and drivers should safeguard against these risks by taking out insurance to meet their needs and budget from the 3 main types: Comprehensive vehicle insurance which although most expensive provides the best cover and protection in event of accident, theft and, damage including flooding and fire. Third-party fire and theft that, despite being less expensive and not covering car replacement, provides cover for damage caused by fire, theft and, hijacking. Third-party cover, usually the cheapest in the market, only covers damage to other vehicles in the accident. Remember that your car insurance won’t cover you for: Normal wear and tear Intentional damage Loss or damage should you leave South Africa’s borders without the appropriate certificate from your insurer or broker showing you have cover outside the country. While Auto Pedigree offers vehicle insurance against theft, damage, and accidents, we also provide a range of products and services such as vehicle interior and exterior maintenance cover to minimise normal wear and tear. Do you have questions on vehicle finance? Fill in the online form or call 086 011 1133 – we’ll help you find the best comprehensive vehicle insurance cover for your individual needs. Disclaimer: This information is for educational, or entertainment purposes only. It must not be construed as advice, legal, financial, or otherwise. We do not make any warranties about the completeness, reliability, and accuracy of this information.

Mandatory Comprehensive Insurance Comprehensive vehicle insurance is a contract between you and your chosen insurance company. It protects you against: Accidental loss or damage to your vehicle Legal liability for loss or damage to another person’s property When budgeting for a new car ensure you can afford your car repayments as well as your insurance premiums. Even one instalment missed can lead to your policy lapsing and putting you at risk. Vehicle Cover Provided Before taking out car insurance, assess who you need to cover under your policy, which may include: Insured only Insured and spouse Insured and other named drivers and licensed drivers. Apart from deciding who will be covered by your insurance policy, make sure you understand the depth of cover you’re taking out, and read your policy document carefully before signing it. If your car is insured for private use all personal, non-business related use would be covered as well as certain business-related travel, for example, travelling to work and back. Your private use policy could also provide cover when you visit clients or other businesses and could also include any samples you carry as commercial goods in transit are often also insured. If your circumstances change, for example, you start lending your car to someone else to use in a business you have started, reassess your cover and determine who should be covered by your policy and whether your vehicle should be insured for commercial rather than private use. It is environmentally and financially wise to join lift clubs, but if you decide to use your car for this purpose, check ramifications with your insurance company. Insurance Renewals You can choose to take out an insurance policy for a year and renew it thereafter. If you do, you’re likely to receive a renewal notice from your existing insurer and can renew your policy with them or test the market for a better option. Constantly changing insurers could affect your premiums negatively, so bear in mind that loyalty can possibly pay off in the long run. When you start planning to buy a new car, remember to budget for vehicle insurance. When buying a second-hand car through Auto Pedigree, we’ll help you get the best comprehensive vehicle insurance cover that suits your individual needs. For a free insurance quote, fill in the form and one of our brokers will respond as soon as possible. Disclaimer: This information is for educational, or entertainment purposes only. It must not be construed as advice, legal, financial, or otherwise. We do not make any warranties about the completeness, reliability, and accuracy of this information.

The term car insurance makes us think that this type of cover is about protecting your vehicle. In reality, car insurance is about covering you as the motorist. If you cause an accident on the road you are liable for the damages made to the other vehicle. While third-party insurance covers damages and injury done to the other driver, it does not cover you as the driver who caused the accident. You would then have to fund your own medical expenses and car repair bills. Read more about the 3 Main Car Insurance Types >> The Effect of Road Accidents in South Africa Knowing the effects of road accidents and injuries that occur on the roads in South Africa can help to understand the importance of comprehensive carcover. In 2015 alone, the Gauteng Roads and Transport Department revealed the following figures: Cost to the country’s economy: R143 billion People seriously injured: 62,520 People slightly injured: 202,509 A further 1,429,794 people were involved without sustaining injuries Human casualty costs: 69.3% of total crash cost Vehicle repair costs: 14.9% of total repair costs Related incident costs: 15.8% The Consequences of no Comprehensive Cover In an economy when most of us are trying to find ways to make ends meet, insurance policies are one of the first areas we cut back on. But with the staggering figures presented above, the negative effects should not be underestimated, especially if you consider the high costs of car repairs and medical bills. Theft Another important consequence of not having any cover is theft of your motor vehicle. The impact is worse if your car is still being paid off, as you will still need to continue paying the monthly instalments, as well as the repairs to the damage done. Third-party, theft, and fire policies are a cost-effective option to consider, especially if you live or work in a less safe area. Investigate the various ways you can add security to your car – these could also help bring down insurance premiums. Auto Pedigree offers vehicle security products such as Datadot® technology, tracking, and window safety film. Damage to Another Vehicle If you choose to cut back on your car insurance, it’s probably best to only reduce it down to third-party cover without eliminating insurance completely. The liability on you to pay for damages and injuries for both yourself and the other driver could set you back hundreds of thousands of rands, and if you are unable to pay for third-party damages, you could be sued. Damage to my Vehicle by Another According to the AA, in 2018, some 65 - 70% of vehicles on South African roads were uninsured, and this number is growing. Therefore, only three accidents out of ten would involve someone who would be able to pay for any damages at all. This is why the AA have stated that it is the responsibility of each car owner to make sure they cover themselves. As mentioned above, without comprehensive car insurance, you incur the massive costs of all parties involved in an accident. However, even if the accident was not your fault, the inconvenience of trying to claim for damages done by another driver is often not worth the time and energy. In fact, you could even incur additional costs on legal matters without any guarantee that you will be able to claim. So, while comprehensive insurance is the most expensive cover to maintain, it provides the most peace of mind. However, any insurance is better than no insurance, so think carefully when looking for ways to cut back on expenses. When you’re ready to buy a used car from Auto Pedigree, talk to us about finding an affordable car insurance option suited to your budget. With over 7,000 satisfied customers, we’re here to provide you with excellent service. Call us on 0860 331 331 or 086 011 1133. Disclaimer: This information is for educational, or entertainment purposes only. It must not be construed as advice, legal, financial, or otherwise. We do not make any warranties about the completeness, reliability, and accuracy of this information.