Types of auto policies

Third Party
This is the minimum package which satisfies the requirements of the laws of Zimbabwe as defined by the Road Traffic Act.

Most motorists opt for this choice simply to fulfil their legal obligations on the road.

Third party insurance is purchased by the insured (first party) from an insurance company (second party) for the protection of another party (the third party).

Therefore, this policy covers the motorist’s liability for damage to the other motorist’s vehicle and not for accidental damage to their own car. Therefore, though very popular, this package is not convenient in protecting a vehicle.

Comprehensive full cover
This policy is the highest level of cover offered by most insurers; it ensures the vehicle against a wide array of events.

This can include accident damage, theft, fire and vandalism among others.  Vehicle owners should check with their insurers to ensure what perils are included under their comprehensive coverage policy so that they know what they are paying for.

Under normal circumstances, even if a driver is involved in an accident and the car is written off, they are supposed to get its replacement cost. If the motorist was involved in an accident with another vehicle, cover will also be extended to the other vehicle.

Though expensive (4-5% of value of vehicle per year), comprehensive cover is really convenient because the vehicle owner is rest assured their vehicle is safe. That is, if their insurer is not a con-artist.

 

718 total views, no views today