Car Insurance Guide

Car insurance vs the Road Accident Fund: what covers what?

Written by Chloe Adams Managing Editor Reviewed by Nomsa Dlamini RE5 qualified · 12 years in short-term insurance Updated 28 July 2026 Our editorial standards →

What is the difference between car insurance and the RAF?

They cover completely different things. The Road Accident Fund (RAF) is a state body, funded by the fuel levy, that compensates people injured or killed in road crashes caused by another driver's negligence - it covers bodily harm, not vehicles. Car insurance is private cover you buy for property: your own vehicle and third-party damage. The RAF will never repair your car, and your insurer does not pay RAF injury claims. Most drivers need both.

Key takeaways

The RAF is a state fund for bodily injury and death; car insurance is private property cover.
The RAF is funded by the fuel levy you pay at the pump.
The RAF never repairs or replaces vehicles - only compensates people.
Car insurance covers your car, third-party property, theft and fire.
RAF claims are negligence-based and can take a long time to settle.
Most drivers need both systems working together.

What is the Road Accident Fund?

The Road Accident Fund (RAF) is a state entity that provides compensation to people injured or killed in road accidents on South African roads. It is funded not by premiums but by the RAF levy built into the fuel price - every time you fill up, you contribute to it. Because it is funded this way, cover is effectively universal: you do not apply or sign up. But the RAF's purpose is narrow. It exists to address the human cost of road crashes - medical bills, lost income, loss of a breadwinner - and nothing else. It is a social safety net for bodily harm, not a substitute for insuring your car.

What the RAF covers

The RAF compensates for bodily injury and death caused by the negligent driving of another road user. Depending on the claim, it can cover:

Medical and hospital costs arising from the crash
Loss of earnings if injuries stop you working
Loss of support for dependants where a breadwinner is killed
General damages for serious injury in qualifying cases
Reasonable funeral expenses

Crucially, a claim depends on proving another party's negligence, and claims are known for being complex and slow to resolve.

What the RAF does not cover

Here is where many drivers are caught out. The RAF does not pay a cent towards vehicles or property. It will not repair your car, replace it if it is written off, or cover damage to your possessions, a wall, or another person's vehicle. It also generally will not compensate a driver who was solely at fault for their own injuries. So if you are in a crash with no car insurance, the RAF may help with injuries under the right circumstances, but your damaged or stolen car is entirely your own problem. That gap is exactly what private car insurance is built to fill.

What car insurance covers

Private car insurance deals with property, which the RAF ignores. Depending on your cover level, it can pay to repair or replace your own vehicle after an accident, fire, flood, hail or theft, and cover your liability for damage to third-party property - most importantly someone else's car. Comprehensive cover does all of this; third-party options cover the liability side more cheaply. What car insurance does not do is pay out the personal-injury compensation the RAF handles. The two systems are designed to sit side by side: one protects people, the other protects property.

Why you generally need both

Because the RAF and car insurance cover different halves of the same event, relying on one alone leaves a big hole. In a serious crash you might have injuries (potentially an RAF matter) and a wrecked car plus liability for the other driver's vehicle (an insurance matter). The RAF cannot touch the vehicle damage, and your insurer cannot process your injury compensation. You already fund the RAF through the fuel levy whether you like it or not, so the practical decision is whether to add car insurance on top - and for most drivers, protecting the car and their liability makes that an easy call.

Claiming: RAF versus insurer

The two claims work very differently. An insurance claim is lodged directly with your insurer, follows your policy terms, and - for a straightforward repair - can settle quickly. An RAF claim is a legal-style process against a state fund, based on proving negligence, often involving medical evidence and legal representation, and can take a long time to resolve. They are not alternatives; you may run both after one accident. Knowing this in advance helps you act correctly at the scene and afterwards. When arranging your car cover, it is worth understanding your claims process before you compare quotes.

Frequently asked questions

Does the Road Accident Fund cover my car?

No. The RAF only compensates people injured or killed in road crashes caused by another driver's negligence - covering medical costs, loss of earnings and loss of support. It never repairs or replaces vehicles or other property. To protect your car after an accident, theft or fire, you need private car insurance; the RAF cannot help with vehicle damage.

If I pay the fuel levy, do I still need car insurance?

Yes. The fuel levy funds the RAF, which only handles bodily injury and death claims. It does nothing for your vehicle or your liability for someone else's car. Car insurance covers exactly that property side. The two systems address different halves of a crash, so paying the levy does not remove the need to insure your car.

Can I claim from both the RAF and my insurer?

Potentially, yes, because they cover different things. After one accident you might claim from your insurer for vehicle damage and, separately, pursue an RAF claim for injuries caused by another driver's negligence. They run as independent processes with different rules and timelines, so one does not replace or reduce the other.

How long does a Road Accident Fund claim take?

RAF claims are typically slow. They are negligence-based legal processes against a state fund, often requiring medical evidence and legal representation, and can take a long time to resolve. This contrasts sharply with a straightforward insurance repair, which may settle within days. The two should not be confused when planning after an accident.

Who can claim from the RAF?

People injured in a road crash caused by another driver's negligence, and the dependants of someone killed in such a crash, may be able to claim. Compensation can include medical costs, loss of earnings, loss of support and funeral expenses. A driver solely at fault for their own injuries generally cannot claim for those injuries.

Related guides

Compare and save

Get a free, no-obligation quote from South Africa's top insurers.

Get a Quote Now