Why is Insurance such a necessity?
A frightening statistic on South Africa’s roads is that between 65 and 70% of the 11.4 million registered cars in the country are not insured. If you are driving one of these uninsured vehicles, you are running a major risk that can have serious consequences. “This is something that motorists need to take cognisance of and rectify ”, says Cross Country Insurance M.D. Ian Georgeson.
“It is indeed surprising how many motorists underestimate the negative consequences of being uninsured, assuming that it will never happen to them”. He said
Consider that you are driving on a four-lane highway with three cars ahead of you, four behind you, and one on either side of you. If you are uninsured, five or six of these cars will also be uninsured. If you are involved in a crash with one of them, chances are neither of you will be able to afford the resulting expenses.
“Paying for repairs and recovering costs after a crash can be a slow, painful, and expensive process. This will potentially leave you without transport, or reliant on other forms of transport where it is available, meaning your crash, and the result of you being uninsured, will impact on your life in significant ways,” Georgeson said. In addition if your vehicle is financed you will still have to pay the finance charges if repairs take time or if the car is written off.The Automobile Association estimate that up to 800 000 vehicles in South Africa are either unregistered or classified as non-roadworthy, this means that the possibility of being involved in a crash with an uninsured car is even higher.
It is unlikely that these 800 000 cars are insured given that their owners are not even registering or looking after them. These cars potentially pose a bigger threat to you, as they are unsafe. What would happen if you are involved in a crash with one of these vehicles and your car suffers substantial damages? Who is going to foot the bill if you aren’t covered?
Some people may argue that the costs of insurance are too high. However the reality is that the costs of non-insurance are higher, and that failing to properly insure your vehicle places you at a greater financial risk.