Motor vehicle and household insurance is a single policy incorporating cover for both your car and your home. It is often favored among home owners as a means of saving on car insurance. Almost all car insurance companies offer motor vehicle and household insurance and it is always advisable to look at this option when shopping around for cover for you house or car.
It is not only open to home owners – even tenants can score on motor vehicle and household insurance. As with any insurance cover, it is important to read the fine print and ensure that you understand the policy information with regards to cover for both your house and vehicle. At the end of the day they are two separate entities despite being covered in a single insurance policy.
Car and Home Insurance Cover
Motor vehicle and household insurance is a popular option for many South Africans. However, not all South Africans are aware of the benefits of such cover. You do not have to be a home owner to qualify for motor and household insurance, which is also commonly referred to as car and home insurance.
The advantage for opting for car and home insurance as one is that you are dealing with a single company. Your cover is not divided by option for a joint policy. The vehicle cover and household cover are separate despite it being under a single policy. You still get what you pay for but the main advantage is that it is cheaper than separate car and home cover.
Tenants and Home Owners
It is important to understand what car and home insurance entails. Most of us know the different types of car insurance options – comprehensive, basic and third party. Only the owner of the car can insure the vehicle. With home insurance, it is slightly different. You can insure the entire house (if you are the home owner) and the contents. Homeowner insurance means that the building itself is covered in addition to the contents within it.
Alternatively, you can simply opt for cover for the household contents. This suits tenants and lodgers. Household contents includes all your personal belongings such as your appliances. electronics, jewelry and clothing. Even students living with parents can opt to cover their own household contents and integrate it with their car insurance cover. Apart from theft cover, you are also covered for fire, natural disasters and even certain accidents within the home.
Cost of House and Motor Insurance
A joint policy covering your car and home is often the cost-saving option when looking for cheap car insurance. On its own home insurance is fairly low cost so it does not translate into much of a saving adding on your car. If you are feeling the pinch of car insurance, which is expensive in South Africa with the high crime and road traffic accident rate, then opting for motor vehicle and household insurance may be the better bet.
The cost of house and motor insurance can vary greatly depending on the level of cover you opt for. At the end of the day, however, all insurance companies offer about the same level of cover for the same price. It is possible for joint car and home insurance to actually be slightly cheaper than car insurance on its own. This depends on various factors but insurance companies are keen to pass on a saving to the customer who is willing to take on more cover with them.
It is important to bear in mind that the cost of car insurance varies from person to person as it is dependent on individual risk profile. Consumers should always shop around by getting as many quotes as possible from as many different insurance companies. Ideally a short term insurance broker may prove to be more helpful by shopping around for you and presenting different options.