Will car insurance cover be a necessity in South Africa in 2021?

In many countries, third-party car insurance is compulsory by law, but this has not yet materialised in South Africa. Read on and find out why car insurance cover could be a requirement in South Africa in 2021.

Is car insurance a legal requirement in South Africa? 1,3

Currently, the answer is no. This may be the reason why only about a third of South Africa’s 11 489 6253 motorists have car insurance.

Do motorists really need car insurance? 2

Some motorists are hesitant to take out car insurance because they feel that they are paying a premium each month for something that they cannot eventually possess. According to insurancehotline.com, car insurance must be seen as an investment and a necessity to protect your car.

What are the implications of not having car insurance cover?

By evaluating the possible implications of having no car insurance and what that would mean should you have an accident, motorists may reconsider buying it. Having no car insurance means that in the event that you are responsible for an accident, you would have to pay for all damages incurred to the third party’s car notwithstanding the cost of repairing your own car or losing your car through write-off. In fact, the costs can be so large that most people would not be able to afford this, which could lead to court cases against you if you cannot cover the costs of repairing the third party’s car.

Having a car could be considered a necessity in South Africa

Many commuters would not be able to keep a job without access to a car. That fact makes owning a vehicle invaluable. The necessity of car insurance becomes very clear when motorists realise that it protects them from financial disaster. Also, a motorist would be relieved to discover that when involved in an accident caused by a third-party, if that third party is insured, they can cover the damages to the motorist’s car.

Car accidents do happen 2

Some motorists may think that they will never be involved in an accident. But drivers do sometimes make mistakes. No one can guarantee that motorists will have accident-free lives. It is for this very reason that car insurance should be considered a necessity. Car insurance can allow you to carry on with your everyday life after repairs to your car or the third party’s car have been finalised.

Uninsured motorists – another compelling reason to have cover1

About a staggering 7 out of 10 South African motorists do not have car insurance which means that it is highly likely that if you are involved in an accident, the third party may be uninsured. This means that you would likely receive no assistance from the third party and would have to approach your own insurer to cover the damages sustained. A motorist who thinks that they cannot afford car insurance could start with third-party car insurance.

Motorists should not only consider car accidents

Many motorists may think that car insurance is only designed to protect their car from accident damage. But what if your car is stolen, wrecked by hail or on fire? Car insurance is also designed to cover these important aspects.

Disclaimer

Because car insurance is a complex matter, this article only provides information. If you are considering purchasing a comprehensive car insurance product, contact a certified financial advisor for professional advice.

Sources:

1. 1. 12-million cars in SA, 70% uninsured
   2. Why You Really Do Need Car Insurance
   3. Vehicle population statistics for August/September 2020