A study conducted by the Automobile Association of South Africa has revealed that between 65% and 70% of the estimated 12million vehicles on South African roads are uninsured, and this percentage is growing annually.
In other words, there are nearly 8m uninsured registered vehicles being driven around South Africa, according to a report in African Exponent.
In addition, the AA estimates that up to 800,000 vehicles in South Africa are either unregistered or classified as un-roadworthy, and thus are uninsured, too.
Statistics from the Road Traffic Management Corporation (RTMC) show that there are more than 800,000 traffic crashes in South Africa annually. Based on the insurance statistics, around 520,000 vehicles that are involved in crashes are uninsured.
In this context, insurers have welcomed the government’s proposal announced in the recent Budget to make third party insurance compulsory for all vehicle owners in South Africa. Compulsory third-party cover is expected to lower the cost of car insurance premiums. Around 30% of motorists cite unaffordable premiums as the reason for not buying motor insurance.