Image via freepik.com
Third-party auto insurance is a legal necessity in many countries around the world, but not so in South Africa.
Image via freepik.com
People find themselves on the road every day in collisions that were not their fault, just to learn that the person responsible has no car insurance. In these situations, their only option is to foot the bill themselves for repairs.
Car insurance will help cover the loss of huge amounts in the following way: when an accident results in death, it offers compensation to survivors. This includes litigation, including legal costs resulting from an incident brought against you. It also covers car repair costs due to injuries sustained in an accident.
Many drivers are aware that accidents can happen at any time, however, some still choose to take the risk of not taking up car insurance.
You may be an experienced driver, but new drivers get on the road every single day. It has been said that when you are driving, you’re not only driving for yourself. Consider the new driver or someone who might be in an emergency, struggling to focus on the road.
Sometimes people are vulnerable to the “optimism bias” phenomenon. This is when people think they’re less likely to have something bad happen to them than others, and it works through the perceptions of people — they think their kids will be geniuses, they feel they’re better at their jobs than their coworkers, they’re better drivers than everyone else, and they’re never going to be in an accident, of course.
A vehicle is for others a way of going from point A to B, and nothing else. A couple of bumps and bruises are nothing to think about as long as the car works. Some owners may believe the insurance premium is not worth it if they don’t intend on fixing small damages to the car. The problem is that they don’t take into account protection from third parties. Unless you’re the responsible party in an accident and unless you don’t have third party insurance, you can be in a lot of trouble.
Just about 35% of all vehicles are insured in South Africa. Most South Africans can not afford insurance for cars. Many South Africans also don’t have life insurance, medical aid and other covers that can assist them in cases of emergencies.
If your profession changes and you relocate, you should let your insurer know. As with any other risk factor, such as where you live or what sort of car you are driving, your occupation will influence the cost of insuring your vehicle. If you don’t let your insurer know you may be invalidating your cover.
Believe it or not, car insurance has its purpose and importance and is not a scam. Understanding what car insurance is about and why it is important to have it, will relieve you from many issues in the future.
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