Yes, you definitely need car insurance in this country.
Do I need vehicle insurance in South Africa?
- There are more than 18 000 fatal car accidents here per annum
- You are not in control of how other drivers behave
- Crime stats in this country are high – hijacking and car theft are common
- The condition of the roads are bad
- Social unrest and natural disasters can result in unforeseen damage
When it comes to car insurance, most South Africans feel that it is a grudge purchase. Many people find that comprehensive insurance is expensive and, in tough times, something that is not really needed. But this is being short-sighted. Car insurance is really something that cannot be ignored – in South Africa in particular.
Do I need Vehicle insurance in South Africa and Why is Car insurance so Expensive?
Only about a third of motorists in this country are able to afford insurance on their vehicles. As it is, South Africans have a ‘Stuff you’ attitude when it comes to road manners. We are not known for being polite or law abiding when driving according to the rules.
To the point where there are around 18 000 road accidents that include fatalities every year. Factor in the condition of our roads and the scores of fender benders and other accidents not involving fatalities and you start to understand why South African motorists are considered a higher risk.
To date, insurance companies seem to have taken a somewhat neutral stance when it comes to the disregard that policyholders may have to the rules and so end up paying out more claims.
Yes, but Must I insure My car?
To start off with, there are two things that must be considered first. Is your car financed? Secondly, do you have the money to replace it if something goes wrong?
If your Car is Financed
If your car has been financed, you are bound to find that the financing agreement has a clause that obligates you to take out comprehensive vehicle cover while you are paying it off. Should something happen to the car while you are paying the financing off, and you are not insured, you will find yourself not only having to pay for a new car but also having to pay off the financing for the old one as well.
Can you Afford to Replace your Car if Something goes Wrong?
Hijacking and car theft are real problems in this country. What happens if you are a victim of something like this? Add in the various social delivery protests, the state of our roads and the general disregard for the rules of the road and you have to admit that there is a good chance that something could go wrong.
No matter how carefully you drive, you cannot control the other road users and, even when the accident is not your fault, there is always a chance that you might need to pay for repairs. What if the other driver is uninsured or hasn’t got the money to pay for the repairs?
What if you do cause an accident and have to pay for repairs to a high-end car, in addition to your own?
Do I need vehicle insurance in South Africa? Well, if you can afford to either repay two lots of vehicle finance, or to replace your car outright, or if you can be sure that you will never get into an accident, then no, you don’t need car insurance.
If not, you definitely do.
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