{"id":864665,"date":"2026-06-28T07:00:00","date_gmt":"2026-06-28T05:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=864665"},"modified":"2026-06-26T16:01:15","modified_gmt":"2026-06-26T14:01:15","slug":"new-driving-licence-points-system-could-be-a-big-problem-for-south-africans-with-car-insurance","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/lifestyle\/864665\/new-driving-licence-points-system-could-be-a-big-problem-for-south-africans-with-car-insurance\/","title":{"rendered":"New driving licence points system could be a big problem for South Africans with car insurance"},"content":{"rendered":"\n

Traffic accidents in South Africa cost around R180 billion annually, with many uninsured drivers putting the insured motorists at risk.<\/p>\n\n\n\n

Insurance experts warn that the upcoming demerit point system may worsen this issue by increasing the number of unlicensed drivers on the roads.<\/p>\n\n\n\n

Nearly 70% of all cars on South Africa\u2019s roads are uninsured, which means that if a driver hits another vehicle, there is a two-in-three chance the driver will not be able to pay for the damages.<\/p>\n\n\n\n

\u201cWe\u2019re looking at over 2,000 accidents a day on roads where an estimated 65% to 70% of vehicles aren\u2019t insured, according to data from the Automobile Association (AA) and the South African Insurance Association,\u201d said Van Deventer Dowlath & Marx Inc Associate Director Tanya De Villiers.<\/p>\n\n\n\n

The Administrative Adjudication of Road Traffic Offences (AARTO), which will expand to additional municipalities from 1 July 2026, will also introduce a driver’s license demerit system, similar to those in the UK and Australia. <\/p>\n\n\n\n

Under this new system, when a driver commits traffic offences, they lose points on their license. If they accumulate too many penalties, their license may be suspended or cancelled.<\/p>\n\n\n\n

In South Africa, vehicle insurance policies require drivers to hold a valid driver’s license. If AARTO cancels the license of a reckless driver, their insurance policy becomes void immediately.<\/p>\n\n\n\n

As a result, the number of uninsured, legally unauthorised drivers on the road is expected to increase significantly.<\/p>\n\n\n\n

\u201cWith the AARTO demerit system scheduled to begin penalising bad drivers with point deductions later this year, the chaos could escalate because drivers who lose their licences due to accumulated fines will automatically lose their insurance coverage,\u201d said De Villiers.<\/p>\n\n\n\n

New AARTO system<\/h2>\n\n\n\n
\"\"<\/a><\/figure>\n\n\n\n

De Villiers said most people assume that an insurance claim ends when their car comes back from the panel beater; however, she said that is where the \u201creal\u201d legal process begins.<\/p>\n\n\n\n

\u201cImagine you\u2019ve stopped at a red light and a reckless driver smashes into the back of your car,\u201d she explained.<\/p>\n\n\n\n

\u201cYou report the accident, pay your excess, your insurer pays for the repairs, and then as far as you\u2019re concerned, the matter is closed, but it isn\u2019t.\u201d<\/p>\n\n\n\n

She explained that this is because once the insurer pays your claim, they legally step into the insured party\u2019s shoes, inherit the rights, and can sue the at-fault driver to recover their money.<\/p>\n\n\n\n

If, for example, a negligent driver causes R50,000 worth of damage to someone\u2019s car, the insured party pays a R5,000 excess, and the insurer pays the remaining R45,000.<\/p>\n\n\n\n

De Villiers said that, through subrogation, the insurer assumes the legal burden of recovering the full amount from the guilty party. <\/p>\n\n\n\n

\u201cOnce recovered, you get your R5,000 back, and the insurer keeps the R45,000. It\u2019s a win-win for the consumer that costs the policyholder nothing,” she said.<\/p>\n\n\n\n

She said that this system is actually an essential legal tool that prevents drivers from avoiding financial responsibility simply because the person they collided with had insurance.<\/p>\n\n\n\n

\u201cWithout subrogation, insurance companies would have to absorb billions of rands in losses every year. To survive, they would have to raise monthly premiums through the roof, forcing honest, insured motorists to pay for the country’s national road lawlessness,\u201d she said.<\/p>\n\n\n\n

AARTO points demerit system:<\/h3>\n\n\n\n
Violation<\/th>Penalty<\/th>Demerit Points (Natural Person)<\/th>Demerit Points (Juristic Entities)<\/th><\/tr><\/thead>
Driver is unlicensed to drive the class of vehicle he\/she is driving<\/td>CRIMINAL OFFENCE<\/td>6<\/td>–<\/td><\/tr>
Driving at more than 90 km\/h in a 60 km\/h zone<\/td>CRIMINAL OFFENCE<\/td>6<\/td>6<\/td><\/tr>
Failed to licence a vehicle<\/td>CRIMINAL OFFENCE<\/td>6<\/td>6<\/td><\/tr>
Reckless or negligent driving\/driving under the influence of alcohol<\/td>CRIMINAL OFFENCE<\/td>6<\/td>N\/A<\/td><\/tr>
Refused or failed to comply with a lawful order given by an authorised officer<\/td>CRIMINAL OFFENCE<\/td>6<\/td>6<\/td><\/tr>
Failed to carry a warning triangle (excl. motor car registered before 1 July 2006)<\/td>R1000<\/td>–<\/td>–<\/td><\/tr>
Failed to pay ordinary or e-toll fee \u2013 operator class vehicles \u2013 per toll plaza\/gantry<\/td>R1000<\/td>–<\/td>–<\/td><\/tr>
Failed to proceed when a traffic light was green<\/td>R1000<\/td>1<\/td>1<\/td><\/tr>
Inconsiderate driving<\/td>R1000<\/td>–<\/td>1<\/td><\/tr>
Failed to stop behind the line at a stop street<\/td>R1500<\/td>2<\/td>2<\/td><\/tr>
Skipped a red traffic light \u2013 motorcycle\/light motor vehicle\/bakkie, etc.<\/td>R1,500<\/td>2<\/td>2<\/td><\/tr>
Failed to display a current licence disc<\/td>R2,000<\/td>–<\/td>–<\/td><\/tr>
Skipped a red traffic light \u2013 operator class vehicles<\/td>R2,000<\/td>3<\/td>3<\/td><\/tr>
Driver did not carry driving licence card with him\/her or produced an expired driving licence card<\/td>R2000<\/td>3<\/td>–<\/td><\/tr>
Driving at 89-90 km\/h in a 60 km\/h zone<\/td>R3,400<\/td>5<\/td>5<\/td><\/tr>
Employed or permitted another person to drive such vehicle while the said driver did not have a valid driving licence.<\/td>R3,500<\/td>–<\/td>–<\/td><\/tr>
Driving at 71-72 km\/h in a 60 km\/h zone<\/td>R400<\/td>–<\/td>1<\/td><\/tr>
Failed to pay ordinary or e-toll fee \u2013 motorcycle\/light motor vehicle\/bakkie, etc. \u2013 per toll plaza\/gantry<\/td>R500<\/td>–<\/td>–<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"

Traffic accidents cost South Africa R180 billion every year, and 70% of cars are uninsured.<\/p>\n","protected":false},"author":127,"featured_media":864675,"comment_status":"open","ping_status":"","sticky":true,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9876],"tags":[10895,23077,25422],"class_list":["post-864665","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lifestyle","tag-demerit-system","tag-the-administrative-adjudication-of-road-traffic-offences-aarto-act","tag-van-deventer-dowlath-marx-incorporated"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/864665","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/127"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=864665"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/864665\/revisions"}],"predecessor-version":[{"id":864689,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/864665\/revisions\/864689"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/864675"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=864665"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=864665"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=864665"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}