Insuring a foreign car in South Africa
Like most countries around the world, South Africa has a number of country-specific laws governing car insurance. If you’re a car owner and you’re looking to have your car insured, it’s a good idea to become familiar with these laws, as getting on the wrong side of them can result in hefty fines, or even in your car insurance claims going unheeded. Insuring a foreign car such as a Toyota or even a Range Rover is one area that people have very little knowledge about, and many people find themselves lost and confused when they try to tease out the various automotive insurance laws.
Reasons why foreign cars are expensive to insure
Foreign cars can be difficult to insure for a number of reasons. First, if something goes wrong with a foreign car, often special parts will need to be imported from overseas in order to conduct repairs. This can be extremely expensive and time consuming, and can detract strongly from an insurer’s bottom line. Second, replacing a foreign car such as a Honda or a Toyota if one is written off is also expensive, as a replacement car will often have to be sourced from overseas, which takes both time and money. Foreign cars are also often targets for theft and damage, making them a higher risk than other type of cars. In addition, imported cars that are left-hand drives can be dangerous on South African roads, and may bring with them an increased chance of a road accident or collision.
Insuring a foreign car
South African law can make it quite difficult to insure foreign cars, particularly if they’re a left-hand drive, such as many American cars or cars imported from Europe, such as many Mercedes or BWMs. Some popular Japanese cars such as Toyotas and and Isuzus can also be a challenge to insure, and many of the major insurance companies may avoid offering you an insurance plan. However, there are some auto insurance companies that cater to foreign car owners, and that can offer you an insurance plan that will cover your beloved imported car.
Insuring a car registered in another country
Many people purchase and register their cars in neighbouring countries, but then attempt to take out a car insurance policy in South Africa. However, there are strict limitations governing this, and you’ll likely find that it’s all but impossible to insure a car that is registered in another country. While it’s best to purchase your car in South Africa using a registered dealer—many can be found in big cities such as Capetown, Johannesburg, and Pretoria—you may be able to transfer the registration of your vehicle before attempting to take out a car insurance policy.
If you’re a foreign car owner, or you’re considering bringing your foreign car into South Africa, it’s a good idea to speak with a auto insurance company before attempting to do so. You’ll be directed to an expert who can help you find an auto insurance policy that best suits your needs.
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