Choosing the right motor insurance can feel overwhelming when you don’t know what separates one type from another. The good news is that it’s simpler than it looks. There are three types of motor insurance in South Africa, and once you understand what each one covers, and what it doesn’t, picking the right one for your car and your budget becomes straightforward.
Key takeaways
- There are three types of motor insurance in South Africa: comprehensive, third party fire and theft, and third party only.
- Comprehensive cover is the most complete option, it covers your own car and any third party involved in the same incident.
- Third party fire and theft covers damage to other parties plus fire, theft, and hijacking for your own car, but not accident damage to your own vehicle.
- Third party only is the most limited cover, it pays for damage you cause to others but nothing for your own car.
- King Price's comprehensive car insurance includes decreasing premiums, your premium drops every month as your car depreciates.
Comprehensive cover
Comprehensive cover is the most complete form of motor insurance available. As the name suggests, it covers almost any form of loss or damage that could happen to your car, whether that’s fire, flooding, vandalism, hijacking, or a collision. It also covers loss or damage to another party’s vehicle or property that was involved in the same incident.
If your car is financed through a bank or vehicle finance provider, they will almost always require you to hold comprehensive cover for the duration of the finance agreement. Even if your car is paid off, comprehensive cover makes sense if your vehicle still holds significant value or if you couldn’t afford to replace it out of pocket.
Comprehensive motor insurance covers loss or damage to your own vehicle caused by fire, flood, vandalism, hijacking, and accidents, as well as damage to third party vehicles involved in the same incident.
Third party, fire and theft cover
Third party, fire and theft cover sits in the middle of the three options. It covers damage or loss to another party’s vehicle or property that results from an accident you were involved in. For your own car, it provides partial cover, specifically for theft, hijacking, and fire damage. What it does not cover is accident damage to your own car. If you reverse into a wall or get hit in a parking lot, the repairs to your own vehicle come out of your own pocket.
- Third party
- Any person other than you (the first party, i.e. the policyholder) and your insurer (the second party) who suffers loss or damage as a result of an incident you were involved in.
Third party only cover
Third party only cover is the most limited of the three types. It pays for damage or loss to another party’s vehicle or property that results from an accident involving your car. It provides no cover whatsoever for your own vehicle, not for accidents, not for theft, not for fire, not for hijacking. If your car is older and its market value is low, third party only cover can be a cost-effective way to protect yourself from the financial consequences of causing damage to someone else’s property.
Third party only cover pays for damage to another person's vehicle or property caused by an accident involving your car, but provides no cover for your own vehicle under any circumstances.
The three types of motor insurance compared
| Cover type | Your own car, accidents | Your own car, theft and hijacking | Your own car, fire and flood | Damage to third parties |
|---|---|---|---|---|
| Third party only | Not covered | Not covered | Not covered | Covered |
| Third party, fire and theft | Not covered | Covered | Covered | Covered |
| Comprehensive | Covered | Covered | Covered | Covered |
Which type of motor insurance is right for you?
The right cover depends on three things: the value of your car, whether it’s financed, and what you could realistically afford to pay out of pocket if something went wrong.
- Newer or financed car: Comprehensive cover is almost always the right choice. Your finance provider may require it, and the cost of repairs or replacement is too high to risk.
- Mid-value car, paid off: Third party fire and theft gives you meaningful protection, especially against theft and hijacking, which are real risks in South Africa, without the full cost of comprehensive cover.
- Older, low-value car: Third party only cover protects you from the potentially devastating cost of damaging someone else’s vehicle, at the lowest possible premium.
The biggest mistake South African drivers make is underinsuring or going without cover entirely. When an uninsured driver causes an accident, they face the full repair bill for the other party's vehicle, which can run into hundreds of thousands of rands for a newer car.
Why King Price for motor insurance
King Price offers all three types of motor insurance, comprehensive, third party fire and theft, and third party only. What makes King Price different is that comprehensive cover comes with decreasing premiums. Because your car depreciates in value every month, your premium decreases every month too. You pay for what your car is actually worth, not what it was worth the day you bought it.
King Price's comprehensive car insurance premiums decrease monthly as the insured vehicle depreciates in value, a feature unique to King Price in South Africa.
You can get an instant online quote in under three minutes, or request a callback and let one of the team call you back at a time that suits you.
South African uninsured motorist estimates
Industry estimates suggest that between 60% and 70% of vehicles on South African roads are uninsured, leaving the majority of drivers personally liable for the full cost of any accident they cause.
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Frequently asked questions about motor insurance types
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