The Road Traffic Management Corporation (RTMC) says as many as 800,000 accidents occur on the country's roads annually, but despite this many car owners are uninsured.
About 65% of motorists have no cover, noted the AA, which means there’s a high chance a crash will occur with an uninsured driver.
Covering the cost of damage or a complete vehicle write-off can be financially devastating if you are uninsured, specially when the costs are compounded by the damage caused to another party’s vehicle.
Third-party car insurance can alleviate some of this financial burden if a motorist causes an accident. Typically, it covers motorists for loss or damage caused to a third party’s vehicle and property such as cellphones, GPS equipment and laptops.
Third party insurance is not yet compulsory, but it was from 1942 until 1997. Delivering his 2020 budget speech, former finance minister Tito Mboweni said introducing compulsory third party insurance was one way to reduce the risk of the heavily indebted Road Accident Fund (RAF) and bring about a more equitable way of sharing the costs. He said it would face major challenges, including affordability and enforcement.
As the policyholder who causes a crash, you are referred to as the first party. The second party is the insurer, and the person suffering the loss or damage due to the accident is classified as the third party. Liability in a third party car accident is based on several factors, including the rules of the road and evidence gathered at the scene of the accident through a process of investigations usually involving witness statements and the police.
The reality is that due to a tough economic climate, the average motorist simply cannot afford to cover the cost of an accident.
Siyakha Masiye, spokesperson at MiWay Insurance, said: “South Africans need a financial safety net that can protect them from the legal liability that could arise if they are found to be responsible for causing damage to someone’s else’s vehicle.”
“Though third party insurance doesn’t provide the same level of cover as a comprehensive car insurance policy, it does offer a great level of value and is the most cost-effective option,” said Masiye.
Benefits of being insured
- If you have an accident and it’s your fault, you must pay for your own car’s repairs and those of the third party. The correct insurance will cover these costs.
- If your car is stolen, the correct insurance cover could replace the stolen vehicle.
- Not insuring a car on which you owe money negatively effects your creditworthiness and you may struggle to get a loan for another vehicle or other forms of credit.
Financial strain awaits uninsured motorists after crashes
Image: Gallo Images
The Road Traffic Management Corporation (RTMC) says as many as 800,000 accidents occur on the country's roads annually, but despite this many car owners are uninsured.
About 65% of motorists have no cover, noted the AA, which means there’s a high chance a crash will occur with an uninsured driver.
Covering the cost of damage or a complete vehicle write-off can be financially devastating if you are uninsured, specially when the costs are compounded by the damage caused to another party’s vehicle.
Third-party car insurance can alleviate some of this financial burden if a motorist causes an accident. Typically, it covers motorists for loss or damage caused to a third party’s vehicle and property such as cellphones, GPS equipment and laptops.
Third party insurance is not yet compulsory, but it was from 1942 until 1997. Delivering his 2020 budget speech, former finance minister Tito Mboweni said introducing compulsory third party insurance was one way to reduce the risk of the heavily indebted Road Accident Fund (RAF) and bring about a more equitable way of sharing the costs. He said it would face major challenges, including affordability and enforcement.
As the policyholder who causes a crash, you are referred to as the first party. The second party is the insurer, and the person suffering the loss or damage due to the accident is classified as the third party. Liability in a third party car accident is based on several factors, including the rules of the road and evidence gathered at the scene of the accident through a process of investigations usually involving witness statements and the police.
The reality is that due to a tough economic climate, the average motorist simply cannot afford to cover the cost of an accident.
Siyakha Masiye, spokesperson at MiWay Insurance, said: “South Africans need a financial safety net that can protect them from the legal liability that could arise if they are found to be responsible for causing damage to someone’s else’s vehicle.”
“Though third party insurance doesn’t provide the same level of cover as a comprehensive car insurance policy, it does offer a great level of value and is the most cost-effective option,” said Masiye.
Benefits of being insured
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