The Financial Implications of Not Having Car Insurance

Not only does car insurance give drivers financial security, it also ensures peace of mind when driving on the busy roads of South Africa. With accidents occurring on a daily basis, you've got to ask yourself what you would do if you didn't have vehicle insurance – how would you cope with paying out the damage to your car, or would you be able to pay for the damage caused to another vehicle?

There are various myths that suggest that a lack of car insurance means that drivers cannot take the blame for the accident or accept financial responsibility for any damage that is incurred. These myths are incorrect as the responsible driver is liable for financial compensation, whether the accident resulted in injury or was merely a fender bender. Financial repercussions aside, is important to understand the implications behind an accident. Let's say that you were driving along the highway and were involved in an accident. If blame falls onto an insured driver, you can claim the necessary amount of money from their insurance company. If you are hit by an uninsured driver, you are able to sue the driver for compensation once the damage has been assessed. In the same situation, if you are responsible for the accident and are uninsured, the other driver is compelled to sue you for the necessary compensation.

Not only does car insurance cover damage to a vehicle but it also covers the costs of severe injury. If you are involved in an accident and the other driver is injured, your insurance cover will pay for the injuries incurred, providing that your insurance package includes such a clause. However, if you are not insured, the injured party can sue you for the medical expenses and treatments that are incurred.

To understand the value of car insurance, it is significant to understand the type of help that insurance companies can offer when it comes to accidents. Service providers offer the following:

  • Liability for Bodily Injury: This type of insurance pays for injuries that you cause to other drivers and passengers in the accident.
  • Liability for Property Damage: Insurance would cover the repairs to the other vehicle/s, and other property that you damaged during the accident.
  • Collision Cover: Your insurance company will compensate for damages that are caused to your own vehicle, regardless of whether or not you are to blame for the accident.
  • Third Party Cover: This will ensure that damages and injury to the other party will be covered. However, you will be liable to cover the cost of damage to your own car.
  • Comprehensive Insurance Cover: The type of insurance cover will ensure that you are covered for all accidents, theft, vandalism and natural disaster.
  • Without car insurance, the financial compensation incurred from the above incidents will fall onto the shoulders of the person responsible for the accident, damage or injury. The financial implications can often lead to financial troubles, especially if the costs incurred are large amounts of money. It is also important to remember that uninsured drivers, if sued for compensation, will also need to cover the costs of legal assistance which comes at a hefty fee. Digging into savings accounts or pension funds is not ideal in the current economy as times are tough and every penny counts.

    Uncomplicated, reliable and hassle-free, affordable insurance is all that stands between your savings account and a collision. For your own peace of mind, make the smart choice and opt for a car insurance package that will cover all of the necessary bases.

    MiWay is a direct, short-term insurance provider offering a range of value-for-money insurance products. As well as motor, household and homeowners insurance, there are also add-on products such as warranty cover and liability cover. To see how car insurance buys you peace of mind click here .

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