March 28, 2023
This is a great question, which many motorists are hopefully asking. Life is all about making the right choices to minimise risk. Let’s find out why car insurance is so important. 1
Car insurance covers you financially should your car be involved in an accident. Different types of cover are available. Comprehensive car insurance is the most expensive as it covers your vehicle for the most risk. The cheapest cover is third-party car insurance. 1
Below are just a few reasons why motorists don’t take out car insurance.
Most families are struggling financially during these difficult economic times. They may often reason that paying car insurance premiums doesn’t put food on the table. 1
Some motorists haven’t had an accident for years, so why should they continue paying premiums? One idea that seems to take preference is that accidents don’t happen to me but only to others.
Many motorists have the idea that since they only travel two blocks a week to the grocery store, why should they bother about car insurance?
No one can guarantee an accident-free life, since we don’t live in a perfect world. Even if your driving is always faultless, you can’t control the other motorists’ behaviour.1
If you caused a car accident without cover, it’s your duty to pay out of your pocket for damages incurred to the third party’s car as well as the damage to your own car. Consider this: if you had an accident with a third party and the repair costs were R100,000.00, what would you do, and how would you recover financially? The repercussions are too significant no to consider having car insurance. 1
In this case, the third party is liable for any damage to your car. Hopefully, the third party has car insurance. If not, you would have to fix your vehicle privately while suing the third party for compensation. That is precisely why third-party car insurance is compulsory for all motorists in many countries but, unfortunately, not in South Africa. 1
Before you consider cancelling your car insurance policy because you can't afford it, consult your insurer to discuss other options. For example, you may be able to afford the cheaper third-party car insurance. It worth noting that in that instance, your car may not be covered should you cause an accident, but the great news is that at least the third party’s car is covered. Also, if you work from home and travel shorter distances, ask your insurer if they can help you because of the reduced risk.
The above article aims to explain why you can’t afford to drive without car insurance.1
You can’t cancel car insurance in certain situations. For instance, you are still legally required to pay for comprehensive car insurance if you bought your car with bank finance. So why not come and discuss your situation with us at PMD, and experience our world-class client service? Learn more about our affordable, car insurance including comprehensive car insurance with fixed premiums* and reducing excess*. Our comprehensive car insurance and customised car insurance plans insure cars up to 15 years of age, but our third-party PLUS car insurance covers vehicles no matter how old.
For peace of mind, consult a financial advisor for professional advice when buying a financial services product.
November 7, 2023
November 7, 2023