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Car Insurance

NUMBER-CRUNCHING ON CAR INSURANCE IN SOUTH AFRICA

Car insurance is a necessity in many countries and there are insurance experts who believe that many people will go on to have some form of car accident at one stage in their driving lifetime, will witness a crash or will have a near miss. Hence, it is pretty self-explanatory why car insurance can be one of the most vital things to consider before getting on the road in South Africa. This report looks at some of the main statistics that surround traffic-related incidents in the region and how this affects you.

Even though insurance won’t protect you too much in the event of a fatal accident (of which there are on average 36 fatalities in South Africa daily), the fact that well over half of all accidents are down to drivers making mistakes can mean that you could be accountable for any damage you make to another driver’s vehicle if you have an accident. Insurance is also important because if you have an accident that is the other driver’s fault, their lack of insurance can mean you have to foot the bill.

When compared with other countries, it is sad but true that South Africa does not rank as highly for driving standards. One driving standard that is below par is speed, with a record-breaking eight out of ten drivers that are on the road in the country being recorded as speeders. A lack of insurance can mean you are asking for trouble should you be involved in a high-risk accident.

Having insurance is important and it can help you to cushion up your share of the 35 billion Rand that car accidents cost. Even though a portion of tax of petrol in South Africa is contributed to a fund that covers third-party drivers in accidents, if the 35 billion Rand that accidents cost all of us was to be divided amongst the 44 million of us (even those who aren’t drivers!), we would each be paying 789.29 Rand in accident costs.

There are initiatives like no-claims bonuses which proceed to reward drivers that do make a conscientious effort to drive safely on a daily basis. These bonuses can see conscientious policyholders get significant discounts from the price they pay for their policy because of the fact that they haven’t made a claim over a long period of time. As the no-claims time cumulates, the discounts usually increase as the calculated risk becomes smaller. Some insurers even offer policyholders the chance to protect their bonuses in the event of an unfortunate ‘blip’.

If you do your research and if you have a good reputation as a driver, you could find that what you pay in premiums is a lot less than this. Plus, with there being an array of options for slashing your premiums by instigating a variety of methods like excess, shared policies and the car you drive; there is no reason why you can’t adapt your insurance needs around your financial situation.

But, after all is said and done, Insurance cannot replace what is most important - your life and well-being. The statistics above are scary and the best way to protect yourself (and others), is to be a careful driver.

(Reducing the speed you drive by 5km an hour, can make the difference between life and death!)

 
 

 

This article contributed by www.InsuranceExplained.co.za

Check out www.InsuranceExplained.co.za for more information on Insurance