Car insurance laws in South Africa

If you’ve just become the owner of a beautiful new car such as a gleaming Toyota or a glossy Isuzu, one of the very first things you should do before taking your car for a spin is to take out an auto insurance plan. While drivers are automatically covered by third party insurance as part of the Road Accident Fund, this coverage only covers some of the many claims that may arise as the result of an accident. Taking out a comprehensive auto insurance policy is an excellent way of ensuring that you and your car are protected against all eventualities in the event of an accident, theft, or damage from fire or flooding.

South African insurance law: who needs an auto insurance policy?

Figure show that only thirty per cent of car drivers in South Africa have insured their vehicles. This figure is alarming, and only emphasises the need for drivers to act responsibly and take out a car insurance policy that will protect them in the event of an accident or collision. One major reason for these very low levels of insurance is that automotive insurance is not compulsory in South Africa, although it is in many other countries. In fact, automotive insurance in South Africa is only compulsory if you’ve taken out a finance policy to cover the cost of your car. In this case, the financing institution will demand to see proof of insurance before financing your purchase. This is to protect both them, and you, from a bad investment.

Why it’s not enough to rely on the Road Accident Fund

The Road Accident Fund offers basic third party insurance, but is extremely limited in nature. In addition, making a claim can be tiresome and tedious, and you may not find that the outcome is what you’re looking for. The Road Accident Fund only protects you from liability in the event of death or injury, and won’t protect you from being sued for damages to other person’s vehicle or property. You’ll have far better peace of mind if you take out at very minimum a third party insurance policy to cover you in case you accidentally reverse your car into a shiny new Mercedes.

Why it’s better to take the law into your own hands

Car insurance is one of the few areas where it’s a better idea to take the law into your own hands. South African law may not require you to insure your car, but when you consider the road accident statistics—which stand at over 15,000 deaths annually—you can only agree that it’s essential to ensure that you’re protected by a comprehensive insurance policy. Having an insurance policy on your car will not only protect you in the event of an accident, but it will also offer peace of mind against theft or damage. You may feel safe in a city such as Cape town, but theft and vandalism still remain extremely frequent. Only good will come from taking out a car insurance policy, so do so today!