This is what happens when you drive without car insurance

CAR INSURANCE 101

65% of cars driving on South African roads are not insured. That’s two out of every three vehicles.

Jeff Osborne, Head of Gumtree SA Automotive, says that, without insurance, any accident can leave the car owner badly exposed financially and possibly legally as well. He urges all drivers to get some form of cover especially as there are policies available with monthly premiums at less than R100.

Osborne highlights three key factors in choosing the right kind of vehicle insurance; “what you can afford, the value of your car and your driving patterns”.

He says the last of the three involves “assessing the amount of driving you do and where you usually do it in order to get an idea of the likely risk of an accident”. He adds that where the vehicle is parked, both at home and at work, is a further important consideration especially when assessing theft cover.

Osborne explains that there are three basic types of car insurance options in South Africa, each suiting different needs.

THIRD PARTY COVER

By far the cheapest option. It covers damage to another vehicle and the accidental death or injury of third parties. It does not insure against loss or damage to your own vehicle.

Who should use it? Anyone whose car is old, completely paid off, rarely on the road or who cannot afford a higher premium.

THIRD PARTY, FIRE & THEFT COVER

This adds cover of your own vehicle against theft or fire damage to the basic third party cover of damage to another vehicle or injury to third parties. This option can also cover certain accessories like windscreen, radio or canopy.  It does not cover against any accidental damage to your own vehicle.

Who should use it? Ideal if you owe very little on your car but can afford a slightly higher premium especially to provide cover against theft.

COMPREHENSIVE COVER

The most expensive but also the most extensive cover protecting you in the event of theft, hijacking, damage caused by accidents, as well as fire and natural disasters like hail. Depending on the insurer, this cover could offer additional benefits like roadside or medical assistance, replacement car hire, towing and storage.

Who should use it? Anyone who can afford it and who has an expensive vehicle and/or a significant amount owing on the vehicle or who does a high amount of mileage in higher risk conditions.

Also read: At least 65% of cars on SA’s roads are not insured! 

Source: Gumtree South Africa