You hear of so many people getting into accidents or experiencing car theft, and the biggest risk that can be managed here is not having car insurance.
When you drive an uninsured vehicle you, you are potentially putting yourself in a financially sticky situation, which is tough to get out of. For most countries around the world, car insurance is a law, but that isn’t the case in South Africa. If you have recently bought a car or are thinking about cancelling your insurance, read on to discover why cancelling your insurance is a bad idea.
- You’re putting yourself at risk financially
Even if you consider yourself a good driver, it doesn’t mean you won’t get into an accident and that you’re always safe on the roads. There are still reckless drivers that could cause an unavoidable accident. Should someone bump into you what will you do?In today’s economy, we live it can be hard to have money put away for those emergencies and that's why car insurance is important. Driving around uninsured will not give you the peace of mind you need. Also, being in an accident isn’t the worst thing to happen to your vehicle. Many people have experienced theft or fires that leave their vehicles as write-offs. So insurance isn’t only for when you’re on the road, it’s needed for everything.
- You’re not saving money
Car drivers often think that they’re saving money by cancelling their insurance but that isn't the case. You might not be in an accident or experience theft anytime soon but it doesn't mean you’re never going to be affected by an unfortunate event.You never know what can happen at any given day, you could get hijacked, get into an accident or experience a fire that can leave you carless. All these things cost money and because of the economic state of our country, and the worst could happen when you are financially unprepared to take out thousands of rands on repair expenses. Whereas if you were covered, you could claim on your insurance.
You’re making yourself a high risk for insurance companies
If you have never claimed for any scratch or dent cover before then you could get lower premiums and be seen as low risk.
However, if you’re always cancelling your insurance you will get listed as a high-risk client, therefore, you will pay higher premiums. Not only will you need to pay higher premiums, but insurances might refuse to give your car insurance.
If you are worried about insurance being too expensive, becoming a low-risk client should be your goal, so that you don’t need to pay high premiums.
- Vehicle repairs are expensive
Without insurance, even a small dent can charge you a large amount of money especially if it wasn’t accounted for in your budget. Cars on their own already are too expensive and without dent cover, you’re going to have to pay that money out of your own pocket. It’s important that you have car insurance to make sure you have the means to fix your vehicle.You can’t even count on your vehicle warranty should you have car issues, a warranty only fixes manufacturer faults and none of a third party or yourself, so car insurance is the only insurance that can fix your car should there be any issues.
- How will you pay for damage claims?
As we all know, even the safest driver can get involved in an accident. What will you do once that happens? The thing about damage claims is that you’re going to need to pay the third party for damages should it be seen as your fault. You will be spending a large amount of money fixing someone else's car, what will happen to yours? In most cases, many people are left without a car because they had to spend thousands of rands fixing other peoples. This is something you should really consider when planning on cancelling your car insurance.- You’re in breach of your vehicle finance contract
When an authorised financial service credit provider approves your car finance, you are required to have insurance. If you cancel your insurance you’re in breach of contract and could possibly lose your vehicle. Another thing to consider, should your car be in an accident, stolen, or be written off, you’re still required to pay your vehicle finance even if you are no longer using the car.- You have options
If you’re experiencing financial problems, there are three types of insurance you can receive. You can receive insurance for the third party only which means your insurance will only cover damages for the third party. The second option you could go for is cover for a third party, fire, and theft, which will cover you in cases of the third party’s cars damage, theft or fire.Finally, there is comprehensive car insurance which covers everything. You don’t have to cancel or refuse to have insurance because of finances, you can always choose the best cover for you.
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