10 Ways Car Insurance Shields Your Wallet
Car insurance isn't just a smart move—it can save you financially. Accidents can rack up serious costs, from vehicle repairs to liability claims. With 85.3% of the average South African’s salary going to living expenses, few of us have the extra cash on hand to absorb these costs.
Without insurance, you might find yourself facing very stressful financial circumstances. Let’s analyse car insurance and look into how it has your back when the unexpected happens.
1. Coverage for Vehicle Damage
If you’re in an accident and your car gets damaged, car insurance can cover the cost of repairs or replacement. This means you won’t have to pay out of pocket for expensive repair bills or a new vehicle if yours is beyond repair.
2. Liability Protection
If you're found at fault for the accident, liability coverage helps pay for the damage you cause to other people’s property and their medical expenses. Without this coverage, you could face hefty costs that could severely impact your finances.
3. Emergency Services Coverage
Under some comprehensive cover policies, car insurance can also cover emergency services like towing and roadside assistance. If it’s not included in your cover, you could purchase it as an add-on. This helps you avoid unexpected costs for these services and ensures that you’re supported in a crisis.
4. Safeguards Against Theft
South Africa, unfortunately, has a relatively high vehicle theft rate, especially in certain areas. If your car gets stolen, it can be a devastating experience. Beyond the emotional stress, the financial blow can be severe.
With third party, fire and theft or comprehensive car insurance, you'll be compensated for your vehicle’s market value if it gets stolen.
5. Helps With Weather-Related Damage
South Africa has a diverse climate, and certain regions experience extreme weather, like hailstorms, floods, and even fire hazards. Repairing damage from hail or floods can be shockingly expensive, but if you have comprehensive insurance, you don’t need to worry. Your insurer will step in to cover these costs, saving you from draining your savings.
6. Assistance in Case of Vandalism
Imagine waking up to find your windows smashed or your car keyed. Comprehensive car insurance will cover the cost of repairs for vandalism, protecting you from having to fork out large amounts of money to fix these damages.
7. Saves You from Uninsured Drivers
Only 35% of drivers in South Africa are insured, making uninsured drivers a big concern. If you’re involved in an accident with someone who doesn’t have insurance, the costs of repairs could fall on you if you don’t have insurance yourself. With comprehensive insurance you know you’ll be financially protected even if the other party isn’t.
8. Covers Towing and Roadside Assistance
Breaking down on the side of the road is not only inconvenient but also costly. The cost of towing your vehicle to a repair shop can be surprisingly high - an initial towing can range from R2000 - R3 950. Many car insurance policies in South Africa include roadside assistance and towing cover, ensuring you’re not left stranded or having to pay hefty towing fees out of your own pocket. This is especially helpful if you're travelling long distances or in more remote areas.
9. Can Help With Passenger Medical Costs
Some comprehensive polices will cover medical costs for injured passengers, including transportation to a hospital in the event of an accident. If your children or loved ones are in an accident, this will at least alleviate some financial stress in such a difficult time.
10. Money-Saving Advise
Some comprehensive polices offer medical and legal advice as an add-on. This means you can reach them telephonically for professional legal advice or assistance with legal documentation. This type of expert advice can help you make decisions that could save you money and time.
By choosing the right coverage, you're not just ticking off a box; you're fortifying your finances and enjoying the peace of mind that comes with being fully prepared for anything the road throws your way. This means that you don’t need to worry about unforeseen expenses that may impact your monthly budget, doesn’t that sound great?
