Do you know the cost of a car crash? Don’t find out by accident
Driving without insurance is a gamble that not many people can afford if they are in a pile up. The cost of a car crash can become very pricey.
Being uninsured has huge implications for everyone – the insured, the uninsured and the insurer.
There are however products available which can make car insurance quotes more affordable to cash strapped car owners.
So What is the Real Cost Of a Car Crash?
Before driving on our country’s roads, South Africans should ask themselves if it is worth taking the risk of the cost of a car crash, especially when times are tough and personal budgets are under pressure.
The implications of driving without cover and perhaps having to bear the cost of a car crash affects not only the uninsured party. It also affects those who do have insurance and even the providers of insurance solutions.
Statistics indicate that every year, one in four people will bein a vehicle accident and have to bear the cost of a car crash while one in every two people will experience a collision at least every three years.
With two out of every three drivers being uninsured, the chance of being hit by a driver who is without insurance is high.
Impact Of the Cost of a Car Crash on the Uninsured
Should you get into an accident but have no insurance, the consequences can be financially devastating even if there are no injuries.
While there is damage to your own vehicle to consider, if you caused the accident, you could also be held responsible for the costs of a car crash in its totality including repairing damage to the property of other people.
This can be pursued by the other party in an accident, but in reality it is usually their insurance company which will seek damages.
If others are injured, you could also be sued for medical costs, pain and suffering inflicted on third parties.
Impact Of the Cost of a Car Crash on the Insured
If you do have insurance, but get into an accident with someone who doesn’t, there are still implications for you. Most significantly, you will have to pay an excess for any repairs which may be necessary to your vehicle and other property.
Your premium could increase if you have had to claim the cost of a car crash. That is because your risk profile changes even though the accident wasn’t your fault.
Some insurers also revoke the no-claim bonus; however, with MiWay, clients receive a bonus whether they claim or not.
Impact Of the Cost of a Car Crash on the Insurer
To make their products attractive to customers, insurers work to keep their premiums as low as possible. They do this while still ensuring sustainability. However, drivers without insurance directly impact the industry by driving up costs which often other customers must bear.
Uninsured drivers who have caused an accident often cannot afford to pay for the cost of a car crash. The insurer can pursue them for costs, but this in itself is an expensive exercise and in many cases, doesn’t bear fruit. After all, if someone has no money, they cannot pay. It doesn’t matter what the cost of a car crash is, in that case.
If you are on the road, take advantage of low cost options. Some cover is better than no cover at all, so if your circumstances change, get in touch with your insurer to find out which options are available to you. Get several car insurance costs.
Insurance Alternatives for the Uninsured
The low-cost alternatives available to uninsured drivers include:
- Third-party, fire and theft covers you for fire and theft of your car and damage to the property of others.
- Third-party only covers damages to the property of others.
- MiWay’s unique MiWheels Limited Product, which offers partial cover for your vehicle, as well as benefits such as transport money in place of car hire.
Written by: Rory Judd, MiWay Head of Online Marketing
MiWay is an Authorised Financial Services Provider (Licence no: 33970)
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All info was correct at time of publishing July 3, 2018