Why you can’t afford NOT to have car insurance
We get it, times are tough, budgets are stretched thin and if you find yourself in a financial pinch, like many of us are, then it’s only natural that you will start to look for monthly expenses that you can cut back on or even eliminate entirely.
You may see your car insurance premium as one of these things to eliminate from your expenses. The majority of us may see an insurance policy as a luxury we just can’t afford, like eating at fancy restaurants or signing up for expensive gym contracts. Anyways, car insurance shouldn’t be seen as a luxury but rather a necessity.
Another interesting read: 3 New Year’s Resolutions to Help You Save Money on Car Insurance
Here’s the bottom line:
Cancelling your vehicle insurance may be the worst financial decision you make. Did you know that roughly 70% of South African drivers don’t have car insurance? That means that if you are involved in an accident and you and the other driver don’t have car insurance, then you will both be digging pretty deep into your pockets…
Or, if you get in an accident and the other driver does have insurance, then his or her insurer will pay for the repair of the vehicle, and you will be left to pay off the costs of the repairs back to their insurer.
The truth is, accidents happen – to everyone, including you. And you can’t afford NOT to have car insurance. If you are considering ditching your car insurance, then have a look at these risks and disadvantages that you will need to know:
1. Even good drivers need car insurance
You may consider yourself to be a good and careful driver and someone who doesn’t cause accidents, and maybe you have never been in a bumper bashing yourself, which is pretty good going, especially driving on the wild roads of Africa.
But here’s the deal: the roads are full of drivers who are less careful and who definitely DO cause accidents – and if you happen to find yourself involved in one, then you will be glad you have insurance. Apart from accidents on the road, there are 3 other things that can happen to even the most cautious of drivers:
- Theft
- Fire
- Hijacking
If you have car insurance, then you will be covered should you be an unfortunate victim of vehicle-related crime. If not, do you have the cash to buy a new car if yours just got stolen or damaged?
Related: Is car insurance the same thing as a motor warranty?
2. You could end up spending hundreds of thousands in damage claims
If you are the driver of an uninsured vehicle and you drive into another car – yes, it happens – you will be held liable for the cost of the repairs or replacing the vehicle you crashed into. Not to mention the cost of the damage to your own car. This could lead to costly lawsuits against you by the other driver’s insurance company and the final bill you have to pay for will end up costing you thousands, if not hundreds of thousands… yikes!
3. Cancelling your insurance could affect the cost of your premiums in the future – it pays to be insured
If you stay insured and rarely claim over the years, you will build up a low insurance risk profile. What this means is that your insurer will see you as a low risk and offer you better premiums, which means better prices, as the years go by. If you cancel your policies regularly, then you may end up falling into the higher risk category. This will result in higher premiums and may even cause some insurance companies to refuse your application in the future.
4. You don’t have to cancel your vehicle insurance to make it more affordable
What a number of people don’t know is that if you have a car insurance plan through Oneplan, we allow for you to choose and customise your plan to suit your pocket. Our simple and easy-to-use app and support team can help you to adjust your plan accordingly, we get that times can be tough on our finances, but your car insurance doesn’t have to be.
If you are looking to save money on your car insurance policy, then get in touch with Oneplan to discuss our range of products tailored to suit you!
Your Insurance Family,
Oneplan
