February 12, 2021
Many motorists in South Africa may tell you that car insurance is a grudge purchase. A reason could be due to the financial difficulties that motorists face every month. However, this article informs you, the reader, that car insurance need not be a grudge purchase. Please note that this article is only providing information and not any financial advice.
You can't ‘eat’ car insurance so why spend money on premiums? People may see car insurance as something they can't physically touch once they have paid for it. Perhaps they think that they are paying for something to cover an event that may not happen. But what if an accident does occur?
If you spend many months saving money that will be reserved in the event you have a car accident, you may not be too concerned should there be an accident. This is because you have the confidence that the large sum of money in your account can handle any financial shock should a car accident occur. But how many people can achieve this? This is the critical benefit of car insurance – having cover that can meet the costs of a car accident, natural fire, theft or hijacking, and other losses.
According to Eyewitness News, car insurance protects you from sudden, unforeseen costs that can at times be quite large.
It could be quite stressful if you have been involved in an accident, and your damaged car is not covered. Not only is your car potentially a write-off, but the third party’s car is badly damaged too. The third party could demand a large sum of money from you to have his or her car repaired. Unfortunately, you don’t have that amount of cash readily available. This will increase your stress levels because you simply don’t know what to do. Now imagine the peace of mind you get when you know after an accident that all is well because your comprehensive car insurance policy completely covers damages incurred to both your car and the third party’s car.
Risk is about the uncertainty of something terrible happening. It makes sense to minimise or mitigate your risks when driving your car so that you are not suddenly exposed to unmanageable financial losses. In this way, you are maintaining stability in all your financial arrangements.
Another factor contributing to the concept of car insurance being a grudge purchase is the belief that you will never be involved in a car accident. You may have been fortunate enough to have driven for a few years without even a minor accident. You can quickly start to think that you are a fortunate motorist who is immune to car accidents. As a result, you may believe you don’t need any cover.
You can drive as carefully as you like, but can you trust that all the other drivers will stop when you drive through a green traffic light or drive as carefully as you do? What if a motorist doesn’t stop? In other words, you cannot guarantee your complete immunity to any accidents.
This article must be viewed as only information because car insurance is complicated. If you would like to purchase a car insurance product, please contact a certified, financial advisor for professional advice.
You can decide from the above whether some form of car insurance is a necessity. Perhaps contact PMD for car insurance If you would like to know more about affordable car insurance with unique benefits such as premiums that never increase*? T’s and C’s apply.