Driving Without A Car Insurance Policy

It’s alarming that most drivers on the road aren’t insured, and most simply don’t care! In South Africa, for instance, it’s estimated that almost 65% of cars aren’t insured. That’s practically two out of every three vehicles.

According to Ombudsman1, without proper car insurance coverage, a tragic accident can leave you badly exposed both financially and also legally. Thus, it’s essential to get some form of cover, especially since there are auto insurance policies available with monthly premiums of less than R100.

That said, here’s a comprehensive guide to the risks and consequences of driving without the best car insurance policy2.

Fast Driving

Car Insurance 101 – Why You Shouldn’t Drive Without Car Insurance

There are various reasons why you shouldn’t operate your vehicle without a valid insurance policy. From hefty penalties, fines, suspended licenses, to vehicle impoundments, driving without insurance comes with some severe repercussions. Here’s a brief guide on why you shouldn’t attempt driving without auto insurance and how you can be affected.

#01. You’re Liable for the Other Driver’s Expenses in Case of a Collision

If you don’t have an insurance policy and get into an accident with another vehicle, then you’ll have to cater to the repair and replacement expenses. You might think that if the driver you collided with is insured3, then their insurance will handle all the costs. Well, that’s a fable – pure lies!

Their auto insurance company will name you as the guilty party and bill you for the damages. They might even sue you in your capacity to recoup the losses – remember that these costs can run into the 10,000. It’s hardly ever just a few 1000s.

Driving with Phone

#02. You’re Liable for Your Expenses if You Get into A Car Accident

If you get into an accident and don’t have car insurance, your repairs and even replacements will be from your pocket. Again, you’re looking to cover some super costly expenses which might drain your bank account.

Keep in mind that if you financed your vehicle, you’d still have to cover the finance payments, even though you can’t drive the car while it’s being fixed up. Moreover, if the vehicle is deemed written-off, then you’ll have to pay your instalments until the mortgage4 is paid off.

#03. You’re Liable for the Vehicle Costs If It’s Stolen and You Still Owe on It

Car theft and hi-jacking are the most prevalent world issues in this financial recession. Therefore, if you’re not insured, you’ll have the massive responsibility of replacing the car since you don’t have the comprehensive car insurance policy – which is least to say, financially devastating. You’ll have to deal with the daily stresses of looking for transport means to get you to work, not forgetting that you’ll have to clear the car loan you took.

Man Driving

You’ll be Liable if An Insured Driver Crashes into You

On the road accidents happen at any time. Once in a while, you might get yourself into the worst messes – like colliding with an uninsured driver. Since none of you has insurance, then you won’t apply to their insurer to cater to the costs of damage to your vehicle. You could end up paying hefty legal fees trying to claim for payment for the damages, only for the effort to turn into a waste of cash and energy. The best thing you can do is immediately start to compare car insurance quotes and pick the best one for you, but it can also be helpful to know how to take pictures of a car accident.

Common Questions

Can You Legally Drive Without Auto Insurance?
How Do You Get Car Insurance Without A License?
Can You Insure A Car Without A Driving License?
Is Not Having Auto Insurance A Criminal Offense?

Most people enjoy vehicle ownership. With a vehicle, you can go wherever you want and whenever you can. Nonetheless, before you head out, it’s vital to ensure that you have a cheap car insurance policy. If you don’t get the proper insurance policy, you might face some severe consequences in your future. Therefore, do yourself a favour. Start comparing car insurance quotes online, sign up with reliable car insurance companies and avoid these issues.

For young drivers in particular, it’s important to protect yourseld against insurance fraud.

John Duckett
John Duckett

John helps individuals get the best deal on car insurance. He advises on how to match client needs with budget and successfully negotiates with insurance houses to exceed client expectations. Working in the online space is his passion, he loves to share his knowledge on insurance and keeps an updated blog.

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