Fresh Drive for Compulsory Car Insurance in South Africa
Compulsory car Insurance exists in most countries in the world. A vehicle must have a minimum of car insurance before it is allowed on the road.
And now a similar law may soon apply to South Africa. A staggering percentage of all vehicles on our roads are uninsured. This selfish attitude is becoming a growing concern.
Compulsory Car Insurance Makes a Lot of Sense
If an uninsured driver causes an accident, it is the responsibility of that driver to pay for any damages. Any injuries incurred by the third party are also his responsibility. But all too often, the driver cannot afford to pay.
If the driver had third party insurance, then at least the insurance company would pay for any damages or injuries. However, the uninsured driver has to pay for all the damage to his car.
A minimum of third party insurance for all cars is what people urge the government to make law. Similar to the legislation which exists in most civilised countries today.
With Compulsory Car insurance, Everyone Wins
Obviously, Third party insurance is cheaper than Comprehensive insurance. But there are different types of insurance within those two categories, depending on how much you can afford to pay.
Third party fire and theft is similar to regular third party insurance. In addition to paying the costs of third parties, however, it will also pay the insured for loss or damages due to theft or natural disasters such as flood or fire. It still will not pay the insured though for any accident related damages.
There are different levels of Comprehensive insurance. The most common policy pays for third party damages and damages to the owner in respect to accidents. For an additional fee, Comprehensive insurance can also cover the loss of the vehicle keys, tire repair or a broken windshield.
Although more expensive, many drivers prefer Comprehensive insurance, especially if they need their cars to carry out their work. With only Third party insurance, you have to pay for damages to your car. This could mean you’re without a vehicle for several weeks while saving up the money for the repairs.
With Comprehensive insurance, the company pays to get your car back on the road as soon as possible. Or its pays pay for a rental car until yours is fixed.
Although there is no campaign to enforce drivers to get Comprehensive insurance, the impetus to make drivers get Third party insurance is growing stronger all the time.
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