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Is Comprehensive Car Insurance Necessary?


 

The term car insurance makes us think that this type of cover is about protecting your vehicle. In reality, car insurance is about covering you as the motorist. If you cause an accident on the road you are liable for the damages made to the other vehicle. While third-party insurance covers damages and injury done to the other driver, it does not cover you as the driver who caused the accident. You would then have to fund your own medical expenses and car repair bills.

 

Read more about the 3 Main Car Insurance Types >>

 

The Effect of Road Accidents in South Africa

 

Knowing the effects of road accidents and injuries that occur on the roads in South Africa can help to understand the importance of comprehensive car cover. In 2015 alone, the Gauteng Roads and Transport Department revealed the following figures:

  • Cost to the country’s economy: R143 billion
  • People seriously injured: 62,520
  • People slightly injured: 202,509
  • A further 1,429,794 people were involved without sustaining injuries
  • Human casualty costs: 69.3% of total crash cost
  • Vehicle repair costs: 14.9% of total repair costs
  • Related incident costs: 15.8%

 

The Consequences of no Comprehensive Cover

 

In an economy when most of us are trying to find ways to make ends meet, insurance policies are one of the first areas we cut back on. But with the staggering figures presented above, the negative effects should not be underestimated, especially if you consider the high costs of car repairs and medical bills.

  

Theft

Another important consequence of not having any cover is theft of your motor vehicle. The impact is worse if your car is still being paid off, as you will still need to continue paying the monthly instalments, as well as the repairs to the damage done. Third-party, theft, and fire policies are a cost-effective option to consider, especially if you live or work in a less safe area. Investigate the various ways you can add security to your car – these could also help bring down insurance premiums. Auto Pedigree offers vehicle security products such as Datadot® technology, tracking, and window safety film. 

Damage to Another Vehicle

If you choose to cut back on your car insurance, it’s probably best to only reduce it down to third-party cover without eliminating insurance completely. The liability on you to pay for damages and injuries for both yourself and the other driver could set you back hundreds of thousands of rands, and if you are unable to pay for third-party damages, you could be sued.

Damage to my Vehicle by Another

According to the AA, in 2018, some 65 - 70% of vehicles on South African roads were uninsured, and this number is growing. Therefore, only three accidents out of ten would involve someone who would be able to pay for any damages at all. This is why the AA have stated that it is the responsibility of each car owner to make sure they cover themselves.

 

As mentioned above, without comprehensive car insurance, you incur the massive costs of all parties involved in an accident. However, even if the accident was not your fault, the inconvenience of trying to claim for damages done by another driver is often not worth the time and energy. In fact, you could even incur additional costs on legal matters without any guarantee that you will be able to claim. So, while comprehensive insurance is the most expensive cover to maintain, it provides the most peace of mind. However, any insurance is better than no insurance, so think carefully when looking for ways to cut back on expenses. When you’re ready to buy a used car from Auto Pedigree, talk to us about finding an affordable car insurance option suited to your budget. With over 7,000 satisfied customers, we’re here to provide you with excellent service. Call us on 0860 331 331 or 086 011 1133.

 

Disclaimer: This information is for educational, or entertainment purposes only. It must not be construed as advice, legal, financial, or otherwise. We do not make any warranties about the completeness, reliability, and accuracy of this information.

 

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