How many South Africans are driving without car insurance?
Did you know, according to South Africa’s Automobile Association reports, up to 70% of registered cars in South Africa are not insured?
There are way over 11.4 million cars on the road that aren’t covered. This is if you also take into account the unregistered cars on the road.
According to the Road Traffic Management Corporation (RTMC), 800 000 crashes occur in South Africa every year. This means about 520 000 cars in accidents are not insured. And, many of the motorists that have insurance are choosing the lowest premiums to save money.
When it comes to insurance, you often pay for what you get. If you pay less, you may experience shortfalls when making claims, such as:
- A higher excess fee
- Partial coverage
Insurance should be considered a necessity, not a luxury!
Most South Africans are well-educated on the consequences of not insuring their vehicles. So, it’s surprising how many drivers assume they won’t become a victim of theft or an accident.
Paying for car repairs can be a crippling expense for most. If someone is at fault during an accident and does not have insurance, you better hope they pay out without the need for legal action.
Why are so many South Africans choosing to drive without car insurance?
Here are the top reasons:
They don’t drive often
Some people work from home or rely on public transport to get them from A to B. They may not see the need to take out car insurance. Perhaps they only use their cars occasionally.
Picking kids up from school, popping off to the mall or taking the dog to the vet may seem like quick and easy trips to make. But, most accidents happen close to home. This is why car insurance is vital, even if your car is rarely used.
They can’t afford insurance
Many South Africans can’t afford to pay for car insurance. This is quite alarming. If they are at fault in an accident, they probably won’t have the means to pay for any damage done to your car either. For this reason, cheap third party cover is available. This type of insurance covers damage caused to other vehicles in the case of an accident.
While you can’t control what happens to other cars on the road, at least you can get extra coverage to protect your own car.
They don’t realise the consequences of not having insurance
Ignorance is bliss…
Cars, some more than others, are expensive to repair. And, if you don’t have insurance, you have to fork out the money some or other way when your car needs to be repaired after an accident. Unfortunately, a lot of people don’t realise how easy it is to write off a car.
If you don’t have car insurance, you can end up losing a lot of money, or even worse, racking up more and more debt.
Their car is not their pride and joy
Some people look after their cars and take pride in their cars’ appearances. It’s frustrating that other people don’t.
To some, bumps, dents and scratches are a huge deal. To others, they’re only concerned about the main function of their car, being to get them from A to B. The problem with this is that many of these drivers don’t take the third party into account, so they don’t have third party cover in the case that they get into an accident.
9 Questions you should ask before getting car insurance
Getting car insurance is important. Motorists who want to insure their cars need to understand their contracts properly.
Make sure you ask the following questions before committing to a specific insurance policy.
What type of insurance am I getting – third-party, comprehensive, etc.?
- What is my excess?
Do I pay a different excess amount for damage and for loss?- Are their additional excess fees I need to pay when I make a claim?
- How long does it take for a claim to be resolved?
- Are there penalties for claiming before a certain time?
- Is my car covered for retail value or resale value?
- Is my car covered while other people drive it?
- Are there limitations on my coverage, such as when and where I drive my car?
Should driving without car insurance be illegal?
The big question is, do you think that every car owner should by law have car insurance in South Africa or not?
