Why You Need Car Insurance
In most of the developed countries in the world car insurance is compulsory; not in South Africa. Yet, if you look at the statistics you would think that there are more than enough reasons why it should be compulsory for all drivers in this country.

We all pay towards the Road Accident Fund in the form of a fuel levy. The fund is there to compensate third parties for injuries sustained in accidents but it does not provide cover for their cars. The fund is currently under review and big changes have been proposed which will increase the need for all drivers to have sufficient insurance cover.

South African roads are a nightmare at the best of times; it’s even called the most dangerous in the world by some! No matter how good a driver you believe you are, and perhaps you are, you have to worry about other drivers on the road. There are more cars on our roads than ever before, roads that are often not in a good condition, and many of the new drivers are inexperienced. A report issued in March 2008 by Arrive Alive revealed the following:

1. The number of registered cars on South African roads increased by 5.22% within a year to 8 727 062 at the end of March 2008.

2. There were 376 876 un-roadworthy and/or unlicensed cars on our roads.

3. There were 14 627 fatalities during the year.

4. A police report revealed a slight decrease in carjackings up to September 2007 but 7 214 cases is still 7 214 too many. Car theft is and probably always will be a big problem we all have to contend with.

5. According to Dr Charles Parry of the Alcohol and Drug Abuse Research Group 40% of drivers who die on South African roads have blood alcohol levels in excess of .08gms/100ml.

6. The main causes for death on our roads are drunk driving, recklessness, inexperienced drivers (often unlicensed), speeding, non-roadworthy cars, pedestrians and fatigue.

7. If you are driving without car insurance and you are responsible for an accident you will personally be held liable for the damage to the other party’s car, and various other claims. Imagine if the accident you caused ends up in a multiple car pile-up; you could be financially ruined for life.

8. The cost of car repairs has increased dramatically, even if you drive an old car.

Do you need more reasons to convince you that you should have car insurance in South Africa?

Minimum requirements
3rd party cover is the cheapest level of car insurance you can get. Without 3rd party insurance you leave yourself open to very expensive claims if you have an accident and are not covered. If you can afford a vehicle, no matter if it is a rusty skadonk that barely runs, you need 3rd party cover. With 3rd party insurance, you can sleep easy at night and it is not expensive.

Is 3rd party insurance enough?
The next step up from 3rd party insurance is limited liability (also known as 3rd party, fire and theft) but comprehensive car insurance gives you the most cover. With comprehensive cover you’re basically covered from all angles; all you need to worry about are paying the premiums and the excess. If you drive a financed car it will be one of the loan conditions that you take out fully comprehensive car insurance.

There are a number of ways in which you can lower your car insurance premiums, look out for articles on this topic. Shop around first and compare quotes before you make a final decision. Today the internet makes it very easy and convenient to shop for car insurance.

Whatever you decide, don’t drive around without cover.