Unfortunately, third party car insurance is not compulsory in South Africa. This places a large financial burden on the car insurance industry in general, as they must pay their clients for accidents caused by uninsured drivers. This just reinforces the fact that South African motorists need car insurance in 2021. We will examine some reasons why motorists may not see the need for taking out car insurance.1
Is car insurance unaffordable? 1
Affordability could be a moot point as it depends on a person’s financial priorities. Can one use the reasoning that if most motorists can afford to buy petrol each month, could they also afford car insurance per month? The minimum car insurance may cost considerably less than their monthly petrol expenses. There may well be those who struggle to even pay for a few litres of petrol. The pandemic has exacerbated the financial struggles of many motorists.
Why buy insurance if I hardly use the car? 1
Many motorists are working from home because of the pandemic, and thus feel it’s a waste of precious funds to spend on car insurance. To the motorist, the infrequency of using a car means that the risk is sufficiently low to warrant any car insurance. The sad reality is that most accidents happen not far from a motorist’s home, and so it makes sense that these motorists still require some form of car cover.
It won’t happen to me1
Humans tend to be optimistic and believe that accidents only happen to ‘other people’. No one is immune from this type of thinking as it is evident right across society. Unfortunately, reality can strike anyone at any time, and this doesn’t exclude those who believe they will never have an accident.
What about the cost of a car accident? 1
It’s easy to be dismissive about the necessity of car insurance but we need to pause and think about the costs involved. An uninsured motorist hopes that the third party has cover should the third party have caused the accident. If the uninsured motorist is the cause of the accident, he could be sued by the third party for damages. Besides that, his car could be seriously damaged, which he would have to fix at his own cost.
Can you afford to repair your car? 1
Many motorists may not realize that spare parts are usually overly expensive. This may force the motorist to use cheaper but considerably inferior quality parts. This in turn could affect the safety of the car’s occupants if, for instance, the brakes fail.
What if the car is a write-off? 1
It can easily happen that a motorist’s car is written off in an accident, seeing that the cost of repairs is so high. For the uninsured driver, it may take a long time to rebuild his car, while he is without transport.
How many South African motorists are insured? 1
Only 30% of motorists are insured.1 This means that out of the 10 cars you can see in front of you going to work, 7 of them are not covered. This is a daunting fact and makes you want to take out at least some sort of minimum cover.
Disclaimer
This article should only be considered for information purposes only as car insurance is not straightforward. Please obtain professional advice from a certified financial advisor if you want to purchase car insurance.
It is obvious from the above that South African motorists need to obtain car insurance in 2021. Contact Prime South Africa and find out more about affordable comprehensive car insurance with fixed premiums* and a reduce to zero excess* and many other benefits. T and Cs apply.
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