Car Insurance… one of the most hated expenses in South Africa (other than medical aid of course)! That debit order that comes off every month that we dread seeing but something that we can’t live without in South Africa.
The South African roads are getting more and more dangerous.
We saw a staggering 17% increase in road crashes from early December 2015 to 2016.
This results in an increased need for car insurance but ultimately equates to this: Increase in crashes + Increased car insurance claims = higher car insurance premiums for all of us.
1. Claims Claims Claims!:
Before choosing an insurance provider check what the claims process is, there are some companies that have very efficient processes using apps etc. Also, make sure you are aware of how to claim. eg: if you wait too long your claim could be rejected.
2. Premiums that are too good to be true:
Be wary of premiums that are “cheap”, more often than not you are sacrificing in another area for example high excess!
3. High Excess:
Don’t sign for an unreasonably high excess that you can’t afford to lower your premiums. If you can’t afford that excess when it comes to claims stage there was no use in paying for the car insurance in the first place. A couple of extra bucks could save you from a world of hurt.
4. Vehicle Details Check:
Be sure to check that your vehicle details on your policy document that is sent to you are correct. If the details are wrong, your insurance company won’t pay out your claims.
5. Make sure that your broker or insurance company is registered at the FSP:
The company will have an FSP number that you can use to check at the Financial Services Board (FSB).
6. Some insurance schemes offer partial or savings type cover that is super limited:
It’s recommended to cover the full retail value if your car especially if your car is financed.
Many of us don’t know this but if something “big” in your life changes, not only do we need to update your facebook followers but we actually have to update our insurance company or broker!
Why should we tell them you ask? Because if we don’t tell them that we have moved homes and someone breaks into our car at the new house…they will reject our claim.
Here are some big events we need to tell our insurance providers about:
- Moving to a new home: this is a must because the location that your car is parked at has now changed.
- Getting hitched: your policy may not cover your new husband or wife and if your policy doesn’t specify another driver they won’t pay if your partner is in an accident with your car. ALSO, your premium may go down because insurers see married people as less risky.
- Got a new job: Wonderful! but be sure to tell your insurance company because it matters where your car is actually parked during most of the day and where your policy document says your car is parked.