If you’re planning to buy a car, or have an uninsured car, we recommend getting car insurance. Before you jump ahead, it’s helpful to know the requirements for car insurance in South Africa. Car insurance is not as expensive as most people assume. In fact, it can actually save you a lot of money in the unfortunate event of an accident. But how do you get started, and what is required?
Let’s go over what documents you need, and what information you need to be prepared with when applying for car insurance in South Africa.
Is car insurance required by law?
No, car insurance is not required by law in South Africa. However, you should still get your car insured for the following reasons:
- If you get into an accident and don’t have insurance, the payout for the damages can be quite detrimental to your budget.
- Without valid insurance, you won’t be able to claim compensation if your car gets damaged in a collision or someone else damages it while they’re driving it. Or for example, if another driver hits your parked car.
If you are taking out a loan to buy a car, the bank may request car insurance as one of the requirements.
Requirements for car insurance in South Africa:
- You must be a South African citizen and have proof of address
- You must be over the age of 18
- You must have a valid driver’s license
- You must have a valid vehicle registration certificate
- Be the licensed owner of the vehicle with proof of ownership (this can include your own name, or names of other parties)
- Provide bank statements and banking details. The insurer will request this as proof that you can pay your monthly insurance premiums.
What if more than one person uses the vehicle?
If more than one person uses the vehicle, you must provide details of all drivers when applying for car insurance.
The cost of your car insurance could increase if more people are added as drivers because the probability of a claim increases with each additional driver. However, it’s important to be honest with the insurance provider upfront about who uses the vehicle and how often. Otherwise, if an undocumented driver gets into an accident and their name is not in the policy, you won’t be able to make a claim.
How car insurance is beneficial for budgeting
Having car insurance is not a necessity in South Africa, but it is very beneficial for budgeting. More often than not, people reject car insurance because it’s a monthly cost. Nevertheless, if you budget your premium and excess well, your insurance can save you thousands in unexpected, unbudgeted for repair costs.
Having car insurance means that you’re less likely to have financial problems if something goes wrong with your vehicle or if an accident occurs where someone else is at fault. This can help save money on things like repairs and legal fees.
There are only a few, straightforward legal requirements when applying for insurance. Be prepared with the right, updated documentation and you’re good to go. Although these are basic requirements, we recommend you check with your financial advisor or broker if you need anything else specific to your needs.
To conclude, car insurance is a great way to protect your vehicle and yourself. It’s also beneficial for budgeting purposes. If you’re looking to get car insurance or have any questions about it, feel free to contact us at any time!
Get a quick vehicle or home contents insurance quote from us on: https://qualityquote.co.za/car-insurance-quote/
Please consult with your broker or legal advisor for the exact legal requirements for your insurance. This article is for informational purposes only and should not be construed as financial or legal advice.