Purchasing the right car insurance policy can make all the difference to your finances in South Africa in 2022. While many consumers are choosing to abandon car insurance altogether, it is important to remember that having insurance protects your car, finances and gives you peace of mind that if an accident is to happen, you will not be left with enormous debts to third-parties
Car insurance protects your car and your finances. An accident without any cover can prove financially disastrous when you could owe thousands of Rands in damage to a third party’s car. Here 5 reasons why you should still buy car insurance in South Africa in 2022.1,2,3
1. You’re covered! But what does car insurance really entail?1,2
Depending on the policy, car insurance could cover you in the event of a write-off, smaller accidents, total loss of your car through natural fire and disaster, theft, hail-related damage, and hijacking. Great examples of the different and affordable policies with this type of cover are Prime’s comprehensive cover and customised cover.2
2. It’s necessary! So, why should you bother with car insurance?1
Many drivers go into denial, saying that accidents only happen to others and not to them… Until it happens to them. South Africa is also a high risk for theft or hijackings, with a lot of us knowing someone it has happened to even if we have not been directly affected by it. Imagine if your car was stolen or hijacked and you had no cover; you may have to pay off the bank for a car that you no longer have.
3. Get insurance for your own peace of mind! How many South African motorists have car insurance?3
Unfortunately, unlike in many other countries, car insurance is not compulsory in South Africa (only required by law if your car is under finance). The result is that 70% of all motorists have no cover3. Put another way, if you are among ten cars standing at the traffic lights, only three of those have car insurance. This fact should be even more of an incentive to obtain car cover. If someone crashes into your car, and it is the third party’s fault, his insurer should pay for the damage. But what if he’s not insured? You then sit with a damaged car you can’t afford to repair.
4. Takes care of the details! What if your car breaks down?2
You can’t take the risk these days to break down on South Africa’s roads. This is where Prime South Africa’s 24-hour roadside assistance and towing service can provide great peace of mind. You may think that if you break down, you’ll just ring your friend. What if your friend can’t help you right away?
5. You get to choose! What policy should you choose?2
Generally, the more comprehensive the cover, the higher the premium will be. At Prime, we offer a range of affordable products from Comprehensive to Third-Party Plus, depending on exactly what you need.
Prime’s Comprehensive Car Insurance covers write-off and accident cover, natural fire and disaster, and theft and hijacking. It provides third-party vehicle liability protection of up to R1 million per incident and covers your car up to 100% of its retail value. Other benefits include free R10 000 accidental death cover, 24-hour roadside assistance and towing, and hail damage cover.
Disclaimer
Because car insurance is so complex, this article can only provide information. For the same reason, you should first consult a certified financial advisor for professional advice before buying a car insurance product.
Remember, when purchasing a new car in South Africa, the law requires you to buy comprehensive car insurance if a bank is to finance your car. Prime can assist you with their affordable car insurance with fixed premiums* and an excess that reduces to zero* Ts and Cs apply.
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