The roadmap to car insurance: How car insurance works

Ready to pull back the curtain on car insurance? We’re here to help! Hey, we get it… Car insurance can seem a bit intimidating, but at King Price, we believe in making things as clear as a summer’s day. So, fasten your seatbelts and let’s journey into understanding how car insurance works.

The basics of car insurance

Car insurance, simply put, is a contract between you and your insurer. In exchange for your monthly premiums, your insurer provides financial cover for your car-related losses, as set out in your policy. It’s like having a spare tyre for life’s little (or big) bumps in the road.

Types of car insurance

In the insurance world, there are 3 main types of car insurance:

  1. Third party only

This covers damage you cause to other people’s cars or property, but it doesn’t cover

your own car’s repairs or replacement.

  1. Third party, fire, and theft

This adds protection against your car being stolen, hi-jacked, or damaged due to fire.

  1. Comprehensive

This is the most all-inclusive option, covering you for everything mentioned above, plus damage to your own car (yep, even if the accident was your fault).

Paying for insurance

Your premium is the monthly amount you pay for your cover. Third party only insurance is typically your cheapest bet, with comprehensive insurance being on the higher end of the scale. For obvious reasons.

Here at King Price, we’ve taken things a step further and introduced something called ‘agreed value insurance’. This option covers you for accident damage, theft, and hi-jacking, and for damage to other people’s property. It differs from our ‘normal’ comprehensive cover in the sense that, with agreed value, the value that your car’s insured for, stays the same for 3 years. The amount your car is insured for must be agreed upon by both parties. That’s you and us.

Submitting a claim

If you’re in an accident or your car gets stolen, you submit a claim to your insurer. Once they have all the details and your claim is approved, they’ll pay out your claim, minus your chosen excess. (Your excess is the basic amount payable by you in the event of a claim.)

The road ahead

Knowing how car insurance works is your ticket to a smoother ride. It empowers you to make better decisions and feel more secure on South Africa’s roads.

Ready to start your journey with a company that provides R1 insurance (no, that’s not a typo) up to 20% off when you insure 2+ cars, and royal service? Click here to get a commitment-free quote today.

Remember, the road is full of surprises, but with the right car insurance, you’ll be ready for them all.



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The roadmap to car insurance: How car insurance works


Understand how car insurance works with King Price. Explore different types of cover, learn how premiums work, and wise-up on claim processes. Then, once you’re done, get a commitment-free quote for ultimate peace of mind!


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