As South Africa prepares to implement the long-standing Administrative Adjudication of Road Traffic Offences (Aarto) from December, insurance company King Price has warned drivers that if they are involved in a crash when their demerit points are negative, it will invalidate any claim.
Implementation is scheduled to be in phases from December 1, to September next year.
The Aarto system will mean that receiving fines could cost you your car insurance cover.
“By the end of the year, something as simple as an unpaid fine could spiral into your licence -being suspended,” warns Wynand van Vuuren, client experience partner at King Price Insurance. “And if you’re driving with an invalid licence, you could be driving uninsured.”
“Each traffic offence, from speeding and ignoring a stop sign to driving under the influence, carries a specific point value, based on the severity of the violation. Crucially, paying a fine on time does not cancel the associated points; they are still applied to your record.
“Not only are the points added to the record, but the driver could also face an enforcement order or court action, incurring additional penalties and costs.”
Under this new system, a learner driver can accumulate a maximum of six points before facing suspension, while a fully licensed driver can carry up to 15 points.
“Exceeding this limit results in a licence suspension for three months for every point beyond the threshold. For example, a driver who racks up 18 points will have their licence suspended for nine months.
“After three suspensions, a driver’s licence will be cancelled entirely, forcing them to reapply for a learner’s licence and pass the practical driving test again. Points can decrease over time – one point is deducted for every three months of offence-free driving – and rehabilitation programmes may offer further reductions,” Van Vuuren said.
But for insurance companies, the rubber meets the road at suspension.
“Driving with a suspended, expired, or blocked licence is illegal, and the consequences in the event of an accident are severe. Insurers are explicit: if a driver’s licence is suspended or invalid at the time of an accident, the claim can be rejected.
“The situation can become even more dire if a driver fails to disclose their invalid licence status, as this non-disclosure can lead to the entire insurance policy being cancelled.
“If your licence isn’t valid, we might not be able to pay a claim, no matter how comprehensive your policy is.”
The best defence for drivers is to drive safely and avoid fines altogether. A second critical line of defence is to regularly check for any outstanding fines. Drivers can monitor the Aarto website, and many banks also provide services to track and pay fines securely via websites or apps.
Ultimately, the Aarto demerit system is about accountability, designed to make every driver think twice before breaking the rules of the road. Paying fines on time is no longer just about avoiding penalties; it is about actively protecting your licence, your insurance cover, and your financial well-being.
As Van Vuuren puts it: “Your driver’s licence is the key to your independence and mobility. Protect it – and safeguard your car insurance by driving responsibly.”
