Is car insurance mandatory in South Africa? | King Price Insurance

Car insurance is available in almost every country in the world, but it is not mandatory to have coverage everywhere. In South Africa, for example, car insurance is not mandatory. According to research by the Automobile Association (AA), 70% of cars in South Africa are uninsured.

This has led to rumors that the government is working on a plan to make compulsory motor insurance in South Africa.

It’s really interesting to think about… Because if everyone were legally required to have even the most basic (and cheapest) insurance coverage, we think it would have a tremendously positive impact on our country.

Here are a few thoughts on the concept of compulsory car insurance in South Africa.

Problems with uninsured cars

Let’s start with the problems caused by the fact that most people are uninsured. Imagine an accident where you are responsible and have no coverage. First, there is damage to the other person’s property that is not eligible for your insurance. So you are in a worse position than before.

As for you, well, the other person involved in the accident could take you to court and the court can order you to pay an enormous amount of money. And that’s on top of the legal fees you might have to cough up.

Basically you could be financially ruined while the accident was little more than a minor broken fender.

3 Reasons Everyone Should Have At Least Some Cover

First, it makes economic sense. According to Sowetan, even third party motor insurance can cost 80% less than comprehensive insurance, while third party, fire and theft insurance can cost 60% less. This pales in comparison to the cost of liability for damage caused by an accident involving another person. Absolutely faded, we tell you.

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Second, insurance is good for you, good for them. The reality is that as a driver you can accidentally cause damage to other people and/or their property on the less than perfect roads in South Africa. For this reason, you must at least take out liability insurance to ensure that you can pay for damage after an accident.

Essentially, coverage gives you financial protection if you have an accident.

Finally, South Africa boasts sky-high traffic accident rates. If we just look at the stats published in Transport Minister Fikile Mbalula’s 2019/20 Festive Season Road Safety Report, the numbers are enough to make anyone want to drive like a careful granny.

Sure, the report revealed that there were marginally fewer fatalities (which is a big cheer), but it also highlighted that the cars most often involved in fatal accidents were light cars. The kind of cars we usually drive, so auto insurance isn’t really optional.

It is an absolute necessity to prepare for the very real possibility of an accident.

So… why don’t most people get cover?

The main reason seems to be a lack of awareness. Many people are unaware that there are affordable options, or the benefits of insurance (such as what it pays if an incident occurs), or have no control over how an incident could affect them financially.

People, accidents happen. And criminals are out there and they really like stealing cars.

That’s why we’re loud and proud with our royally crazy ads. Yes, we want to make you laugh, but we also want to make you think about what would happen if you didn’t have cover. We want you to know how our amazing auto insurance options can make a huge difference in your life.

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Our best-selling policies include:

  • The King’s Comprehensive Insurance: Covers accidental damage to your car (as well as damage you cause to other people’s cars or property), as well as theft and kidnapping.
  • Theft & Write-off: Insures your car if written off or stolen/kidnapped never to be seen again.
  • Third Party, Fire and Theft: Covers fire, theft, kidnapping and your liability for the property of others.
  • Third Party Only: Covers your liability for accidental damage to someone else’s property.

Don’t be in the 70% who don’t have coverage.

Click here to see our options, get a no obligation quote and join our kingdom today!

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