Why Do I Need Auto Insurance?
At the moment, auto insurance is not compulsory in South Africa. All car owners are automatically covered by third party insurance thanks to the Road Accident Fund, so why bother purchasing additional insurance? The simple answer is that the Road Accident Fund only covers a small margin of the possible issues you might encounter as a car owner. The only way you will be able to guarantee that you are covered against all possibilities relating to accidents, theft, fire or flood damage is to purchase separate comprehensive auto insurance.
The latest figures indicate that only about a third of car owners in South Africa have decided to insure their vehicles out with the automatic third party cover. This is mostly made up of those car owners who have a finance policy in place to pay for their cars as many financiers demand insurance to protect them from making a bad investment. However, it is important for more people to turn to comprehensive auto insurance instead of relying on the Road Accident Fund which is very limited. Making a claim against the Road accident Fund can be a very tiresome process and often the outcome is not what you might hope for. In addition, you are still faced with the prospect of being sued for damages by the other party. If you opt for comprehensive auto insurance you will have a much greater level of peace of mind knowing that you are protected from most eventualities.
There has been talk lately of the possibility of new legislation which would make at least basic third party auto insurance mandatory, although the idea is still very much in the brainstorming stage and any change in legislation is still some time away. Until that time, doesn’t it make sense to protect an expensive purchase like a motor vehicle? If you need to find affordable auto insurance, then at autoinsurance.co.za we can compare many providers in order to find you the best deal.
823 