South African's avoid motor insurance
Mon, 05 Sep 2005
Just 35 per cent of South African drivers have sufficient car insurance, according to new figures.
Research by insurance company Santam estimates that around seven million cars lead to over one million accidents on South African roads every year and having no insurance could mean financial ruin for many drivers, reports iafrica.com
Caroline da Silva, Head of Commercial Underwriting at Santam warns: "If you have no insurance and crash into a Rolls Royce or a Mercedes SLK the person whose property you damage has the right to sue you in your personal capacity — which could turn out to be financially crippling."
Costs of not having appropriate insurance also include loss of earnings as well as the inability to secure future cheap insurance premiums. It is thought that uninsured drivers cost the South Africa's economy around 12 billion rand (£1.04 billion) a year and insurers are forced to pay-out around 7 billion rand (£0.6 billion) in car-related claims.
Encouraging more drivers to take out insurance could also lead to better road safety according to Ms da Silva, who believes this in turn would help reduce car insurance costs.
She added: "Apart from the obvious importance of cover, a concerted effort needs to be made to educate drivers about the importance of road safety. A reduction in road accidents will also bring down insurance costs, making it more accessible for everyone." 
© Adfero Ltd
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