When I first got my driver’s license, I thought the biggest challenge would be parallel parking in front of strangers. I was wrong. The real headache came a few weeks later when I started shopping for car insurance. Every quote felt like a punishment for being young. The premiums were sky-high, the coverage sounded like it had been written in another language, and I kept wondering whether I was about to commit financial self-sabotage by picking the wrong plan.
That’s probably why Budget Insurance’s Third-Party Only plan feels like a lifeline for so many young drivers. It’s simple, affordable, and covers the nightmare scenario: damaging someone else’s car when you can barely afford to repair your own. But whether it’s the perfect solution—or just a stopgap until you’ve built some financial breathing room—depends on how you look at it. Let’s unpack the good, the questionable, and the “maybe not for everyone” sides of this policy.
The Harsh Truth About Being a Young Driver
Insurance companies don’t exactly roll out the red carpet for first-time drivers. In fact, they do the opposite. From their perspective, someone under 25 (or anyone without years of proven driving experience) is risky business. The statistics don’t lie: younger drivers are more likely to be involved in accidents, not because they’re reckless by default, but often because they’re still learning how to navigate real-world traffic, late-night driving, and, let’s be honest, a little overconfidence.
For insurers, that means higher claims. For young people, it translates into higher premiums. Sometimes the quotes are so steep they feel almost laughable—why pay more to insure your second-hand hatchback than the car itself is worth? That frustration is often the push toward third-party policies, where the monthly costs are at least manageable.
What Third-Party Only Actually Covers
At its core, Budget’s Third-Party Only plan is bare-bones insurance. If you bump into someone’s shiny SUV at a four-way stop, your policy steps in to pay for their repairs. If you total another driver’s car in a fender bender, you’re not financially ruined. What it does not do is fix your own car or replace it if it gets stolen. You take that risk on your shoulders.
For a lot of young drivers, that’s not as scary as it sounds. If you’re driving an old Toyota Tazz that’s already seen better days, you probably care more about staying road legal and not owing someone a fortune if you crash into them. On the flip side, if you’ve managed to save up for a newer car, the lack of protection for your own wheels can feel a little too risky.
Why It Appeals to Young Drivers
The first reason is obvious: price. Budget Insurance is known for competitive premiums, and their third-party option is often the cheapest legal way to get insured. When you’re balancing student loans, part-time jobs, or the cost of living on your own for the first time, keeping costs down matters. Paying hundreds less each month for insurance can mean the difference between surviving on two-minute noodles or being able to grab a proper dinner once in a while.
The second reason is peace of mind—though it’s a particular kind of peace. If you’re unlucky enough to rear-end someone in traffic, you don’t have to figure out how to magically produce R100,000 for their car repairs. That alone can help you sleep at night.
And then there’s the simplicity. Comprehensive plans can be confusing, with a laundry list of benefits and conditions. Third-party insurance is straightforward. It covers the other guy’s car. Done.
The Downsides You Can’t Ignore
Still, it would be unfair to paint this plan as the perfect fit for every young driver. There are gaps—big ones. The most glaring issue is the lack of cover for your own car. If you rely heavily on your car for university, work, or helping out at home, losing it to an accident or theft could derail your entire routine. Imagine waking up one morning, heading outside, and finding your car gone. With third-party only, you’re on your own.
Another downside is the long game. Sure, the premiums are lower now, but over time, paying for repairs or replacements out of pocket may cost more than you’d have spent on a comprehensive plan. It’s a gamble: will you get through these years without a major incident? Some drivers do, but many don’t.
There’s also the social pressure. I remember telling a friend that I had third-party only and getting the look—the kind that says, “So you’re basically uninsured then?” It’s not entirely true, but it’s not entirely false either. For some, that stigma matters.
A Realistic Scenario
Let’s imagine two friends: Sipho and Amy. Both are 22, both just bought their first cars. Sipho drives a ten-year-old Citi Golf worth maybe R40,000. Amy managed to get a newer Polo, worth about R150,000.
Sipho chooses Budget’s Third-Party Only plan. It makes sense. If his car gets dinged, he’ll find a backyard mechanic, source second-hand parts, and keep rolling. But if he crashes into Amy’s Polo, he won’t have to sell his kidneys to cover the damage.
Amy, on the other hand, may regret third-party only. If her Polo gets stolen, she’s stuck with a huge financial loss. For her, a comprehensive plan, even at a higher cost, may be worth the stretch.
This example shows why third-party plans aren’t one-size-fits-all. They suit certain lifestyles, budgets, and cars—but not everyone.
Where Budget Insurance Stands Out
Compared to other insurers, Budget has carved out a reputation for keeping things, well, budget-friendly. Their Third-Party Only plan is particularly accessible because it doesn’t come with a mountain of hidden add-ons or complicated clauses. It’s often praised for being transparent, which young drivers (who may be navigating insurance for the first time) really appreciate.
That said, Budget’s brand positioning—“cheap but reliable”—can be a double-edged sword. Some critics argue that affordability comes at the cost of customer service or claims processing speed. Reviews are mixed. One person will swear Budget saved them thousands, another will claim they fought tooth and nail to get a payout. As with most insurers, your mileage may vary.
How It Fits Into a Bigger Picture
Insurance isn’t just about surviving today—it’s about planning for the long haul. Third-party cover may work for you now, but as your financial situation improves, upgrading could be a smart move. Many young drivers start with third-party only, then shift to more comprehensive cover as they get better cars or more income stability.
Think of it like renting your first flat. It’s not perfect, but it works for now, and you’ll probably upgrade when you can. Third-party insurance is the insurance equivalent of that starter apartment with dodgy plumbing.
My Own Experience
When I was 21, my first car was a faded red Opel Corsa that cost less than my laptop. I went with third-party only because it seemed ridiculous to insure it comprehensively. One day I scraped the bumper on a parking pole, shrugged, and left it. Had I been on a comprehensive plan, I’d have stressed about making a claim. Instead, I just lived with the battle scar.
But then, a year later, I had a close call where I nearly rolled into a brand-new Mercedes at a traffic light. That’s when it hit me: third-party insurance wasn’t just about me—it was about protecting myself from other people’s outrageously expensive cars.
Looking back, I think third-party was the right choice for me then. But as soon as I bought a newer car, I upgraded without hesitation.
The Verdict
So, does Budget Insurance’s Third-Party Only plan suit young drivers? For many, yes. It offers affordable protection against the most financially devastating risks, while keeping monthly premiums within reach. It’s not glamorous, it’s not comprehensive, but it’s practical.
Still, it’s not the only option, and it’s not the forever option. If your car is worth more, or if losing it would throw your life into chaos, it may be wiser to look beyond the cheapest plan.
At the end of the day, third-party only is less about securing your car and more about securing your future from financial disaster. For young drivers on a tight budget, that’s often enough.