Wondering what’s included in your car insurance? Here’s a clear guide to what is–and isn’t–covered by comprehensive, third-party, and theft-only policies.
There’s nothing as important as knowing exactly what you’re getting yourself into. You wouldn’t buy a phone without seeing it and knowing what features it offers you.
So why would you get insurance without knowing exactly what it covers?
We’re here to break down what your coverage includes based on your policy type, and show you how Pineapple makes knowing it easy peasy.
TL;DR – Our version of “I’m not reading all that, *SparkNotes pls.”
- Car insurance exclusions are specific situations that your policy doesn’t cover you for, like wear and tear or driving under the influence.
- Each car insurance policy type has it’s own exclusions, even comprehensive car insurance, which offers you the broadest protection.
- If you decide to make upgrades to your car, be sure to inform your insurance provider, as this can impact your cover and your payout in the event of a claim.
- With Pineapple, you can double-check your vehicle’s insured value and inform us of any modifications via our app.
Insurance? Pineapple. Get a quote today!
Understanding The Main Policy Types
The three common car insurance policy types offered are:
- Comprehensive car insurance
- Third-party only car insurance
- Third-Party, fire & theft car insurance
- Comprehensive:
Comprehensive car insurance is the most extensive vehicle insurance policy type. It covers damage to your own vehicle from a wide range of events (including accidents, theft, etc.), and third-party liability coverage. - Third-Party Only:
Third-party car insurance protects you if you damage to someone else’s property or injure them in an accident. However, it doesn’t cover damage to your own vehicle or injuries. - Third-Party, Fire & Theft:
This car insurance policy stands between third-party and comprehensive cover. It protects you when you’re responsible for damage to someone else’s property while offering protection against damage caused by fire and theft of your car.
Let’s take a look at a quick comparison table:
| Coverage Item | Comprehensive | Third-party only | Third-party, fire & theft |
| Accidental damage to your car | Covered ✅ | Not covered ❌ | Not covered ❌ |
| Damage to other people’s property | Covered ✅ | Covered ✅ | Covered ✅ |
| Theft of your car | Covered ✅ | Not covered ❌ | Covered ✅ |
| Fire damage to your car | Covered ✅ | Not covered ❌ | Covered ✅ |
| Weather events (hail, flood, storm) | Covered ✅ | Not covered ❌ | Covered ✅(*if caused by fire, e.g. lightning) |
| Vandalism / Malicious damage | Covered ✅ | Not covered ❌ | Not covered ❌ |
| Accessories and sound systems | Covered ✅ | Not covered ❌ | Covered ✅(*if caused by fire or theft) |
| Write-offs (total loss) | Covered ✅ | Not covered ❌ | Covered* ✅ (*if caused by fire or theft) |
So, long story short:
Comprehensive: Broadest cover, including accidents, theft, weather and vandalism.
Third-Party only: Liability only, no cover for your own car.
Third-Party, Fire & Theft: Protects your car against theft, fire and liability.
What Your Policy Doesn’t Cover
We love some all-inclusive insurance, but just like most things, it’s got its limits. Here’s a peek at some things that your policy doesn’t cover:
1. Mechanical Or Electrical Breakdown:
Insurance doesn’t cover damage caused by wear and tear or gross negligence.
Example: Your engine left the group chat because you weren’t taking your car for routine servicing = Not covered.
Prevention Tip: Follow your car manufacturer’s service schedule, don’t ignore those warning lights, and regularly check your fluids, brakes, and tyres. Most policies require you to maintain your car’s upkeep as a condition of cover.
TL;DR: Failures due to normal wear or lack of maintenance are excluded.
2. Damage From Incorrect Fuel:
If your car is damaged because you used the wrong fuel type, that damage won’t be covered by your insurer.
Example: Filling a petrol vehicle with diesel = Not covered.
Prevention Tip: Always make sure you ask for the correct fuel type when filling up.
TL;DR: Damage caused by using the wrong fuel in your car is excluded.
3. Commercial Use Without Disclosure:
Private car insurance only covers personal use. If you’re using the vehicle for commercial purposes, for example, Uber, Bolt, or other business purposes, you’re going against the insurance policy’s terms and conditions.
Example: Using your car for a delivery/e-hailing service and getting into an accident = Not covered.
Prevention Tip: Update your policy if you plan to use your car for business or commercial use.
TL;DR: Commercial use is excluded unless that’s what your car’s covered for.
4. Using The Car For Racing Or Outside The Declared Use:
Insurance doesn’t cover damage caused by racing or any use outside the purpose declared on your policy.
Example: Using your car to race or in a track event and crashing = Not covered.
Prevention Tip: Avoid racing activities unless you have specific coverage for this.
TL;DR: Racing or undeclared use is excluded.
5. Driving Under The Influence:
Any damage caused while driving under the influence of drugs or alcohol is not covered.
Example: Driving over the legal alcohol limit after a night out and being involved in a collision = Not covered.
Prevention Tip: If you’ll be drinking, consider alternative modes of transport like taxis, e-hailing services, or getting a designated driver.
TL;DR: Accidents caused while you’re under the influence are excluded.
6. Driving Without A Valid Licence:
Driving without a valid licence invalidates your car insurance cover, with all accidents under these circumstances being excluded.
Example: If you, or another unlicensed driver, operate your vehicle and are involved in an accident, you are not covered.
Prevention Tip: Make sure every person you let get behind the wheel has a valid driver’s licence.
TL;DR: Accidents or damage caused while the person driving doesn’t have a valid driver’s licence are excluded.
7. Theft Of Accessories Without Visible Forced Entry:
Insurance doesn’t cover the theft of items from your car unless there is evidence of forced entry.
Example: A mobile device or GPS unit being removed from a parked vehicle with no signs of break-in = Not covered
Prevention Tip: Always lock your vehicles and keep your valuables out of sight.
TL;DR: Theft without forced entry is excluded.
To stay safe, always read your schedule carefully to ensure you know what applies to you and the specific policy type you chose.
Speaking of forced entry, what are the exclusions regarding windscreens and glass? Let’s find out.
Glass / Windscreen Cover
Windscreens can suffer from chips, cracks and scratches for several reasons. And while you can’t repair a damaged windscreen yourself, you can take maintenance steps to prevent or fix your windscreen-related issues before they become bigger fish to fry.
However, it’s important to note that this excludes the coverage of a sunroof. Sunroofs can be more fragile, use a different type of glass, and are generally more expensive to replace.
What About Factory-Fitted Vs. Declared Extras?
Your insurer automatically covers factory-fitted equipment like standard sound systems and built-in navigation systems. But, upgrades or modifications you add yourself, like custom mags, spoilers, premium sound systems, etc., must be declared in your policy.
If you don’t declare them, damage or theft claims related to these extras may be denied.
So the next time you think of making your car look like it just drove out of an episode of Pimp My Ride, consider that.
How Write-Offs Are Calculated
A write-off, also known as a total loss, is when your insurance provider determines that repairing your car is not cost-effective. This usually happens when repairing your vehicle would cost more than what it’s worth at the time of the accident.
You might think a write-off only happens when your car is completely wrecked, but that’s not the case. It happens when it costs more to repair the damage than the vehicle’s insured value.
But how is this determined?
After an accident, an assessor will inspect every scratch, dent, and broken part. They calculate the total repair cost, including:
- Replacement parts
- Labour
- Towing and storage fees
- Administrative costs
This determined amount is then compared to your car’s insured value before the accident happened. If the repair is higher than your car’s insured value after your excess is deducted, your insurance provider can declare it a write-off.
So, if your car is valued at R150,000 and the total repair costs come to R160,000, the insurer can declare it a write-off because repairing it costs more than the car is worth.
So, How Is Your Payout Calculated After It’s Written Off?
Once your car has been declared a write-off, the insurer will calculate your payout amount based on the car’s value just before the accident.
If you have an outstanding loan on the car, the insurer will first pay the bank or your finance house, and then you will receive any remaining balance. Your policy’s excess amount is always your responsibility, so you’ll have to pay it out of pocket.
Let’s take a look at an example:
- Insured Value: R200,000
- Outstanding Finance: R50,000
- Excess: R5,000 (paid by you)
- Your Payout: R150,000
Pretty straightforward, right? But what happens if your car is written off outside of the country? Let’s get into territorial limits.
Territorial Limits
As much as we wish it did, comprehensive car insurance doesn’t cover you everywhere. It’s got boundaries, which we know as territorial limits.
With Pineapple, your car is covered while cruising around South Africa and in certain neighbouring countries. These include:
- Botswana
- Lesotho
- Mozambique
- Malawi
- Namibia
- Eswatini
- Zimbabwe
Always check your insurance policy documents before you cross the border. This will let you know exactly where your coverage applies.
It’s also important to remember that third-party liability cover only applies within South Africa. If you’re outside of SA and cause damage to another driver’s car or property, that liability claim won’t be covered, even if your vehicle is insured for damage.
To avoid this, look into separate cross-border liability insurance before you set off on your international travels.
So, the general rule to follow? If you’re going on a cross-border road trip, make sure you know:
- Whether your car cover extends into that country.
- That third-party liability protection stops at the South African border.
Preventing Claim Disputes
The last thing you want after an accident is an argument about whether your claim gets paid out. Luckily, there are some things you can do to lower your chances of a dispute with a few simple steps:
1. Document The Damage:
After an accident, take clear, timestamped photos of the following:
- The damage to your car.
- The whole accident scene (including skid marks, traffic lights, road conditions, etc.)
- Any third-party vehicles or property involved.
Having this information on hand makes it easier for us to process your claim quickly and fairly.
2. Check Your Insured Value:
Ensure your cover amount matches your car’s retail value (the highest value). You might not get enough to replace your car if you’re underinsured.
3. Notify Us ASAP:
If you delay reporting an accident or damage, it can complicate your claim—or worse, invalidate it. You know how the early bird catches the worm? This applies to the claims process because early notice = a smoother process.
Accidents should be reported within 24 hours or by the next working day. Failing to do this can lead to your claim being denied.
Simply put, snap, check, and notify. This will help you avoid the messy back-and-forth that turns a claim into a dispute.
But what do you do when your claim is rejected? Let’s unpack:
4. Request A Claim Rejection Letter:
Ask your insurer for the official letter explaining why your claim was denied. This will help you understand why they rejected your claim, as it includes the specific reason and any references to your policy.
5. Compare With Your Policy Wording:
Review your policy documents carefully, as this will help you see if the rejection aligns with the exclusions, limits, and conditions listed in your contract.
6. Escalate To Your Insurer For Review:
Contact your insurer’s complaints department with supporting evidence if you believe the claim was wrongly denied.
7. Contact The National Financial Ombud Scheme (NFO):
If your insurer maintains the denial after escalation, you can escalate it externally with the National Financial Ombud Scheme (NFO). This is an independent body that resolves disputes between policyholders and insurers.
Frequently Asked Questions: Unpacking Coverage Exclusions
What does cover excluded mean?
In the simplest terms, ‘cover excluded’ means that an event may not be covered by your insurance provider, so they will not pay for the damage. For example, using your car for Uber when you stated the car was used as a ‘Private’ vehicle. When you buy an insurance policy—whether it is car insurance, home contents cover, or per-item insurance—the policy is essentially an agreement on what the insurer will pay for. An exclusion is a line in that agreement that explicitly states what they won’t pay for. It’s the insurance industry’s way of setting boundaries so that everyone knows exactly what risks are being taken on.
What are some examples of exclusions?
Exclusions generally fall into categories that come down to common sense, illegal activity, or wear and tear. For example:
- Wear and Tear: If your sofa’s fabric naturally fades over time, insurance won’t cover it. Insurance is for sudden, unexpected events, not the natural ageing process of your things.
- Unlicensed Driving: If you lend your car to your cousin who doesn’t have a valid South African driver’s licence and they get into an accident, the claim will be excluded.
- Driving Under the Influence: If you drive under the influence of alcohol or drugs and damage your vehicle, your car insurance policy will not pay for the repairs.
- Defective Workmanship: If you hire a cheap contractor to fix your roof and it leaks because they did a terrible job, your home contents cover won’t pay to fix their mistake.
- Intentional Damage: If you throw your phone against the wall because you’re angry, that is excluded. Insurance covers accidents, not tantrums.
What is the common reason for policy exclusions?
The most common reason for policy exclusions is to keep insurance premiums affordable for everyone. If insurance companies covered absolutely every single thing that could possibly go wrong, premiums would be so high that nobody could afford coverage. Exclusions keep the community stable by removing risks that are either inevitable (like wear and tear), entirely within your control (like reckless driving), or so catastrophic that they could bankrupt an insurer (like an act of war).
How are exclusions determined?
Exclusions are determined by underwriting experts who analyse data, statistics, and risk probabilities. Underwriters review historical data to determine which risks are reasonable to cover at a given price point. If a certain event happens too frequently, is too predictable, or is caused by gross negligence, it gets added to the exclusion list. It’s basically a giant math problem to ensure that the premiums collected from all policyholders are enough to cover the valid claims that get submitted.
Where can I find my cover exclusions?
You can find your specific exclusions in your Policy Schedule and your main policy disclosure document. At Pineapple, we do our best to write these documents in plain English rather than dense insurance jargon so you can actually understand what’s being said. Every exclusion will be clearly listed under a heading like “What we do not cover” or “General Exclusions.” It’s highly recommended to check this section out before you need to claim, so you aren’t left with any unpleasant surprises.
Check Your Coverage in the Pineapple App
Not sure if your car is fully covered? Or worried you’re leaving gaps in your insurance? The Pineapple app has you sorted.
Peek at your policy, check your insured value, confirm your extras, and make sure everything’s in tip-top shape.
While you’re at it, add Credit Shortfall Cover to your policy to protect yourself from any outstanding finance fees if your car gets written off, because ain’t nobody got time to be paying for a car they no longer have.
If you’re not a certified Pineappler yet (bombastic side eye), this is your sign to get a free quote today in under 90 seconds. And for R19-ish a day, you can unlock a world of convenience and safety for you and your four-wheeled bundle of joy.
Pineapple (FSP 48650) is underwritten by Old Mutual Alternative Risk Transfer Insure Limited, a licensed Non-Life Insurer and authorised FSP. T&Cs apply.
Please Note: The information provided above is for informational purposes only; you should not construe any such information as legal or financial advice.
