A new approach to vehicle insurance, which reduces premiums, can provide peace of mind for the large number of under-insured drivers on South Africa’s roads. AIG South Africa has introduced an insurance product, the Total Loss-Motorcar, which provides premiums at a fraction of the cost of comprehensive auto insurance.
“The greatest barrier to people taking out motor insurance is cost,” says Wally Gast, Personal Lines Manager for Africa. “In South Africa vehicle insurance can be expensive as a result of the high risk of criminal activity, unlicensed road usage, road traffic densities and a road infrastructure that needs both maintenance and improvement.”
In response to this and in continuation of its effort to make insurance accessible to more motorists, AIG has created an insurance product that provides for payment in the event of the vehicle being stolen or written off due to collision.
South Africa’s vehicle hijacking and road accident statistics provide enough evidence to support the importance of vehicle insurance. Recent figures show there is an accident every four seconds on our roads, while 39 cars are hijacked and 220 vehicles are stolen every day.
Yet, according to AIG South Africa, 70% of motorists on South African roads are not insured. This has far-reaching implications for all road users, whether they are insured or not. If you are an uninsured driver, you alone are responsible for the financial implications of replacing your car if it is written off or stolen.
“The advantage of our Total Loss- Motorcar cover is that we offer very low premiums at a fraction of regular car insurance,” says Gast. “Drivers may save up to 75% compared to comprehensive motor vehicle insurance.”
Although this doesn’t cover “fender -bender” type accidents, it does cover drivers for a worst-case scenario - when your car is totalled or stolen.
“Considering that the majority of drivers are under-insured and reluctant to pay for motor insurance, our Total Loss-Motorcar product fills a gap and provides peace of mind to vehicle owners that they won’t be left with insurmountable expenses following the loss of their vehicle,” says Gast.
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