Comprehensive vs Third-Party - the Real Maths

The "buy comprehensive, always" rule is wrong for roughly 1 in 4 South African motorists. Here is the data-driven framework for deciding - including the break-even age, mileage and value points.

The three tiers, side by side

| Comprehensive | 3rd Party, Fire & Theft | 3rd Party Only
Damage you cause to others | Yes | Yes | Yes
Damage to your vehicle | Yes | No | No
Theft & hijacking | Yes | Yes | No
Fire | Yes | Yes | No
Hail & weather | Yes | No | No

The break-even formula

Replace comprehensive when: annual premium > 8% of vehicle value. At that point, three claim-free years would cost more than the vehicle is worth.

Worked example

A 2012 Toyota Yaris worth R75,000 with comprehensive premium of R740/mo = R8,880/yr. Ratio: 11.8%. Switch to third-party fire & theft at R310/mo (R3,720/yr). Self-insure for own damage by ring-fencing R5,000/yr - within four years you have R20k saved, enough to replace the vehicle minus salvage.

When comprehensive is non-negotiable

Financed vehicles - banks require comprehensive cover for the duration of the loan.

Vehicles worth > R150,000 - replacement cost dwarfs premium even at premium loadings.

High-theft models - Hilux, Ranger, Polo, Fortuner attract theft surcharges that make third-party only marginally cheaper.

Hail-prone provinces - Gauteng and Free State see annual hail events causing R250m+ damage. Comprehensive covers; third-party does not.

The hybrid play - laddering excess and cover

SA insurers allow voluntary excess from R2,500 to R20,000. Increasing voluntary excess from R5,000 to R12,000 typically reduces premium 14-22%. Combine with a high-deductible TPFT policy for cars valued R80k-R150k.

The 5-year decision tree

Vehicle value > R250k or financed - Comprehensive, no question.

Vehicle value R100k-R250k - Comprehensive with raised voluntary excess.

Vehicle value R50k-R100k - TPFT, self-insure own damage.

Vehicle value < R50k - Third-party only, save the premium difference.