What Could Be the Cost if You Don’t Have Car Insurance in 2020?

Unfortunately, car accidents can happen at any time and as we know it can cost a lot of money to repair your car let alone if another motorist is involved and you caused the accident.

Disclaimer

Please seek financial advice from a qualified financial adviser before you buy car insurance. Please do not consider this article as financial advice.

Is car insurance needed?1,2,3

The vast majority of South Africans are driving around on our roads without having car insurance because many motorists think that the inevitable will never happen to them.

As an insured motorist, if you were to get into an accident with someone that is not insured, it can cost you a lot more as the other motorist might not be able to financially cover the cost of your car’s damage. South African motorists should look at having some form of insurance even if it’s Third-Party claim insurance, where it can at least cover the cost of another vehicle that might be involved in an accident.

What are the statistics around the number of South Africans who don’t have insurance?1,2,3

The sad reality is that between 67 – 70% of South African motorists don’t have any form of car insurance. That is 7.8 million – 8.4 million road users are without car insurance. That means that 6 or 7 out of 10 motorists don’t have insurance. It is shocking to believe that only between 30 – 35% of motorists have insurance and unfortunately run a high risk of getting into an accident with another motorist without insurance.

Unroadworthy cars1,2,3

With many cars not being insured also pushes up the number of vehicles that are not roadworthy, as they do not get checked because they are not insured. Usually, unroadworthy cars will not be legally registered to use the roads. More cars that are not roadworthy due to the neglect of taking care of them mechanically-speaking have a higher chance of causing an accident due to some form of mechanical failure.

Why could it be beneficial to have car insurance?

One of the main potential benefits of having car insurance is that if you were to get into an accident, you would not likely be left with any potential costly surprises. It will also be beneficial to know what your insurance policy covers. That’s why it is always helpful to have comprehensive car insurance, as it includes a broader spectrum when it comes to car insurance. Let’s have a look at what could be covered by your insurance:

• Hail Damage: Mother nature tends to throw us some curveballs and hail is one of them. Hail damage can cause some pretty horrendous damage to a motor vehicle, and in some cases, a car could be written off.
• Add Hi-jacking and Theft: With the crime rate in South Africa being quite high, there is a chance that your car could either be stolen or you could be a target for hi-jacking. Paying a car insurance premium every month is a better alternative than paying for a new car out of your pocket.Row Content Here
• Rental Car: A car rental benefit can be highly useful if you find yourself in the unfortunate situation of your car being stolen, hi-jacked, in an accident and it needs to go to the panel beaters. Your insurance policy might provide you with a rental car until your car comes back from the panel beaters or until your vehicle has been replaced after the theft or accident.
• Tow Truck: Some insurers also include roadside assistance if your car needs to be towed either due to an accident or your car breaking down. Nobody wants to sit on the side of the road, especially at night, without anyone being able to help them. This will be very beneficial for your safety as well.

With all the knowledge we have now, it is obvious that having some form of car insurance is the smartest move. Not only to protect yourself but other motorists too.

Sources:

1. midrandreporter.co.za: More than 60 percent of cars on roads not insured
2. Wheels24.co.za: You'll never guess how many vehicles are registered in SA
3. Wheels24.co.za: Car insurance in SA: 'A necessity, not a luxury'
4. Disclaimer