We mentioned earlier that there are some legal requirements when it comes to
insurance.
Compulsory insurance for car financing
The first point to note is that it is compulsory to have car insurance if
your vehicle is subject to a financing agreement - which most cars bought new in
South Africa are. This means that the bank (or other financing institution) will
require you to produce proof of insurance as part of the process of getting
financing for your car.
Roadworthiness
You are also legally required to ensure that your car has a certificate of
roadworthiness if it is not bought new. The easiest way to organise this is to
take it into any of the Automobile Association testing centres. They will carry
out all the necessary tests and issue you with a certificate on the spot. Budget
about half a day for the entire process.
Keeping your details current
While this one is not an actual legal requirement, it is something so simple,
yet something that would be foolish to ignore, as it can make claiming on your
insurance not only a headache, but could also invalidate your claim. It's simply
this: make sure that you keep your insurance provider updated with any changes
in your personal details, living circumstances and car circumstances. For
example, if you move house, and the storage facilities for your car change, make
sure you not only give your insurer your new address, but also make sure that
you apprise them of any change in your car storage circumstances. For example,
you may have insured your car while living in a secure, guarded complex, and
then moved to a house with a lock-up garage and an automatic gate. While your
car may be just as safe on your new property, the insurer could use the fact
that the information on your policy does not accurately reflect your living
circumstances to invalidate your claim.
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