Why car insurance should never be cut from your budget

5 July 2016

Unfortunately, it seems as though the cost of living is rising faster than our salaries, and so, many South Africans have had to start taking the dreaded ‘B-word’ seriously – BUDGETING.


We compare the prices of different brands of sugar and work out the average cost per kilo of a beef fillet, we make sure we keep enough money to one side for school fees and rent and, of course, we set our cell phone debit orders to come off right after pay-day. We do this because we consider these expenses to be essential to our day-to-day lives.

While cutting back to the bare minimum, an important consideration should be your car. Crucial to your lifestyle and livelihood, getting you from point A to point B every single day, you may need to lower your expenses but your car should not be one of them. You make provision for petrol each month, but there are other essentials to consider.

Car insurance protects you financially in a number of potentially budget-bursting scenarios. For instance, accidently bumping the back of another car in traffic – a car which happens to be double the price of your own, or being caught in a hail storm with no shelter in sight.

If you are sceptical about purchasing car insurance, just remember that the amount you could end up paying may be a lot more than your insurance premium. Can you really take the risk of not having car insurance? Think about the value you place on having a working car – how much is your car worth to you? Can you afford to be without a car? You may rely on it more than you think – taking your kids to school, getting you to work and even buying the groceries may be greatly challenge if you didn’t have your car.

Going about our days, the truth is that we don’t really know what may or may not happen to our cars but we do know that, if something does happen and you’ve planned ahead, you (and your budget) are covered.

MotorHappy (PTY) LTD is an Authorised Financial Services Provider FSP 46123.


This article is intended to be used and must be used for informational purposes only. We do not make any warranties about the completeness, reliability and accuracy of this information. Any action you take upon the information in this article is strictly at your own risk. We will not be liable for any losses and/or damages in connection with the use of the information contained in this article.

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