Unfortunately, some vehicle owners (after being involved in an accident), occasionally get the very unpleasant news that their insurance claims will not get paid because they had a third party drive their cars at the time of an accident. It’s also the last thing you want to hear after going through something traumatic. On top of that, in today’s economic climate, it’s surely a scenario that everyone wants to try and avoid.
Joe Szemerei, executive head of Indwe Risk Service’s direct division says that many clients often only read their insurance policies properly when they need to make a claim: “It is important that you fully understand what your insurance will cover you for and to ensure that you are not underinsured,” says Szemerei. “We find that people are often so busy trying to get the cheapest possible insurance cover that they don’t check their policy properly and often end up not being adequately insured”.
Considerations like excesses, insured values and unstipulated items or conditions often only come into play when a client wants to make a claim. “Clients should read their insurance policies carefully, from cover to cover, to prevent nasty surprises at claim stage”, recommends Szemerei.
When an insurer quotes on insurance cover, various factors are considered. These range from the make and year model of the vehicle, to who the driver is, what the vehicle will be used for and the client’s previous claims history.
The rising cost of vehicle repairs is also taken into account so, while the value of your vehicle will depreciate annually, the cost to repair it should it be in an accident or gets damaged, rises. “Due to the high number of accidents that take place in South Africa, the repair of accident damaged vehicles is the biggest cost for insurers”, says Szemerei.
The cost of repairing a vehicle and parts used increase every year, even though the car value has depreciated. In view of this, premiums have to increase to keep in line with these costs.
This is why it is so very important to always read the fine print and make sure you understand your insurance cover completely. Not only will this enable you to make the correct choice on the type of insurance you need, but you’ll also save yourself from being underinsured.
To avoid making this from happening in the future, always remember: When signing with the provider with the lowest rates look at their level of cover, client service and value-added benefits
- Combine your motor and household insurance – combination policies are usually cheaper per insured item
- Make your car safer – install a tracking device and immobiliser and you may qualify for a substantial discount on your premium
- Try to keep your claims record clean because, when you make a claim, your premium will in all likelihood go up
Don’t claim for small incidents that you could pay for out of your own pocket, for example, a cracked windscreen on your car or a broken window in your house. For more tips on choosing the correct type of vehicle and household cover, visit www.indwerisk.co.za