Should cash-strapped students have insurance?

One of the very best feelings is successfully passing your driver’s license. It represents freedom, the entry into adulthood and independence. Owning your first car is simply exhilarating and while the financial struggle is almost immediately felt, it seems totally worth it.

It’s a big responsibility owning a car and anybody you talk to will tell you that car insurance is a must. But, this seems like an enormous expense for a cash-strapped student with, at best, a part-time job. However, losing your car or not being able to afford repairs when necessary can see you sink into insurmountable debt or worse, simply leave you without a vehicle at all. In this type of situation car insurance is the real hero in this sad story.

Let’s break down the ins and outs of car insurance

First off there are different levels of car insurance that cover you in different ways. They are namely:

• Third party only – which covers you for claims made against you by other drivers involved in an accident with your vehicle. It’ll cover any liability for injury to people involved and damage to their vehicles and property.
• Third party, fire and theft – it is the same cover as offered by third party only insurance but with the additional cover against fire damage and theft.
• Comprehensive – this covers all of the above mentioned instances and includes any accidental damage to your own vehicle, your personal possessions and medical expenses.

Each insurance provider will offer slightly different packages and because they’re fiercely competitive with each other their benefits can sound quite incredible

As a student you’re likely to consider third party only cover or third party fire and theft. Usually the difference in price is minimal. Your first car as a student is unlikely to have all the safety bells whistles that a more expensive vehicle will have, so protecting your car particularly against theft is an excellent idea.

Opting for the third party fire and theft cover protects you against the worst possible scenario and if you sign up with a reputable insurance company you might be surprised at the benefits you can receive. For instance, enquire about their no-claims discount policy. After a certain amount of time spent – usually after a year when you’re up for policy renewal – driving safely, within the speed limit and with no accidents to your name you can earn a discount on your monthly premiums. Some insurers will also discount you if you show that you’re driving less and your mileage drops. What’s more, you can benefit from free services such as roadside assistance. If you’re covered with a well-known insurance group who operates in Cape Town, Gauteng and other major cities they’ll be able to offer you this service no matter where you are in the country.

Car insurance is likely to be the last thing on any student’s mind

During all your years studying you may never even make use of your insurance, especially if you live in residence at university. But, it is still beneficial to have. No matter how professional and successful you are, paying for another vehicle’s damages as well as your own should you be involved in an accident is never easy or inexpensive. Also, if you don’t have insurance now but decide to sign up later on in life and they realise how long you’ve been driving without being insured, you will incur penalties which will cost you in the long run.

Also view:

Car Insurance, Education and Road Safety