In today’s time’s, it is hard to believe that not all South Africans have car insurance, especially with the high mortality figure that is displayed annually. We have been raised with the idea that car insurance of any type would be essential.
Being involved or even causing a car accident can be a huge financial burden if you don’t have insurance or also Third Party Cover. So why is it that majority of South African motorists don’t have car insurance?
How many are South African motorists insured?
When it comes to insurance, there are a few to choose from in 2020. Comprehensive cover is the most inclusive form of coverage when it comes to cover. If you are involved in a car accident, and it’s your fault, both you and the other motorist’s cars will be covered. Third-Party cover is the most affordable form of coverage that insures if you are involved in a car accident, and it’s your fault that at least the other vehicle is covered by it. In some parts of the world, motorists must have at least Third Party insurance; this does not apply to South Africa. This, unfortunately, results in only 30-35% of registered cars on South African roads having insurance of any form.
The uninsured 65-70% of cars put much strain on the insurance industry when one of these motorists cause an accident and are not insured. The insurance company is obliged to carry the cost of repairing the vehicle from an accident caused by a non-insured motorist. Why is it though that so many South African motorists are uninsured?
Finances
With the constant unemployment growth and cost of living going up significantly each year in South Africa, it is just not possible for some motorist being able to afford insurance on their vehicles. The money would be instead put towards daily basic needs. Unless Third Party cover becomes compulsory, motorist won’t even get Third Party cover.
It won’t happen to me
Some people have the belief that getting or causing a car accident will never happen to them. This is a worldwide psychological phenomenon. Getting car insurance doesn’t even cross these people’s minds.
Usage of vehicle
Some people have the idea that because they do not use their vehicles often or travel very short distances that having car insurance is not necessary. A US survey that was conducted in 2002 showed that 52% of car accidents happened in an 8km distance from home.
Understanding the cost implications
When a car is involved in an accident, it can be financially ruining for a motorist if they do not have insurance. Unfortunately, most motorists don’t realise the extreme costs of repairing a vehicle that has been in an accident.
When this happens, most uninsured motorists will do self-repair on their vehicles which will result in cars with minimal repairs making those cars not roadworthy. This puts even more strain on our roads when it comes to accidents and also puts a lot of innocent motorists at risk with this kind of negligence.
Depending on how bad the accident is, a car can even be written off. Imagine trying to cover the cost of a complete car if you caused the accident, and you don’t have insurance or even worse if someone is seriously injured and have to cover those costs as well? This will be financial ruin for most people.
Just looking at the possibilities of an accident, it would be advisable for motorists to at least consider Third Party insurance as the cost of an accident is far higher than a monthly instalment.
Are you interested in getting affordable car insurance? Perhaps consider getting affordable car insurance with unique benefits like fixed premiums* if you don’t claim and a reduce-to-zero excess* with Prime South Africa. *T and Cs apply.
Sources:
