All you need to know about Car insurance and Road Safety in South Africa.
Cars and Vehicles insurance
Vehicles users are aware that it is a financial risk to get involved with a person who is uninsured.
Chances of getting damages compensated are at zero. Even if you have a top car insurance cover and drive responsibly, still your mind is not at ease because the greater percentages of car users in South Africa are not insured.
However its advantageous to have a car insurance than driving in the roads without one. Car insurance will cover all damages, theft and accidents. In the Countries such as the UK, car insurance is mandatory for every car owner and tougher penalties are imposed to reduce driving cars without a car insurance.
CarinsuranceSA.co.za insurance guide will advise on car insurance and road safety in South Africa.
Basics of car and vehicle insurance
Car insurance policy is a platform where the insurer accepts financial responsibilities for any loss the insured has encountered through accidents, theft and damages. We advise any car users to be fully aware of the terms and conditions the policy has. Understand their packages benefits, bonus, excess packages and others.
Golden Rules on Car Insurance are:
- Know the car insurance policy you are purchasing. You wouldn’t want to get surprises when you make a claim. Make sure you are fully satisfied with the insurer’s offer and in return, you have signed for.
- Car insurance clients are encouraged to be as genuine as possible in giving their personal information. If the insured information is wrong or slightly wrong, the insurers are forced to refuse to compensate. This is so to avoid clients from claiming for non-existing damages, theft, accidents or any other types of frauds.
- The insurer is obliged to pay you what you have agreed upon when you signed up their contract.
Car insurance clients who have no knowledge of how insurance works have problems of understanding why premiums come in different packages. It’s important to understand why you are paying a certain premium.
There are factors the insurer considers when you make a claim. Hence packages premium come in differently. Factors include :
- The model, type of car and how much its cost, how old it is and how depreciated the vehicle is. The insurers also consider the replacement or repairing value of the car in question.
- The insurers check if it’s reasonable for the car in question to have repairs and make sure that all damages are repaired. If 70% of your has depreciated the insurer has to written-off your vehicle. In cases where the car is written-off, the insurer will buy you a new car or buy the depreciated car from you, it all depends on what the contract you agreed on states.
- In most cases, the terminology used for written-off payment is called vehicles market value or vehicles retail value. Market value is how much money you were going to sell it whether it was old or still new. Retail value is the amount of money you would pay to buy a vehicle from a dealer whether the car was old or new. Meanwhile, a trade value is how much money you would earn when you trade a second-hand car to a dealer.
- In the case of market value, the money you get from the insurer is not enough to buy a new car.
The cost of car insurance premiums
Factors considered by the insurer in calculating premiums
- The insurance policy will calculate on how large your cover is and that will determine the cost. The larger-scaled extensive the more the insurance cover is. Comprehensive insurance is the most expensive because it covers more valuables as compared to the Third Party Only and Third Party Theft and Fire.
- Model and make of the car are factors considered when a premium is calculated. Some vehicles cost more than others when they are being repaired while other specific cars are at risk of getting hijacked or stolen. How much the car is safe plays a pivotal role in calculating a premium for the vehicle. Repairing airbags are quite costly, hence the cost of the premium will be increased.
- How old the car determines the premium price too. Replacing the old car is less expensive, what can be expensive is finding the parts for the car which are sometimes difficult to find. Its advisable to get an AA test certificate if you are to cover a pre-owned vehicle, that way you have lower rates.
- Sporty cars are more likely to have a higher premium. They have a higher speed acceleration associated with them. In most cases, they are driven by younger people who are still being nurtured to be more responsible on the roads.
- Age determines a Younger drivers insurance is more expensive as compared to the elderly.
- Where you live will affect your premium. If you leave in high-density areas where there is more crime especially of stealing and hijacking cars, your calculated premium becomes expensive.
- Telematics, black box or any other fitted tracking devices will lower your
- Premiums prices are also determined by the gender, driving experience, driving record and if or not the driver has a license.
- First-time drivers or drivers who have never used the South African roads have the highest premiums until they have a proven record of driving responsibly in the country. A good driving reputation will reduce premiums when you purchase a car insurance policy.
- It cost more to ensure a car with a stand-alone-policy. On the other hand, the stand-alone policy is more advantageous especially if it’s a married couple where the other partner might be irresponsible and destroy both peoples driving reputation.
- You might qualify for a reduced premium. Not making a claim for a long period of time will earn you a No Claim Bonus. The longer you do not make a claim the more reduced the premium is.
- A car insurance Excess will enable a client to pay a lower premium, however, the person who makes a claim should pay an excess fee.
- Some insurance company allow a client to negotiate an Excess fee. That will increase the premium. The higher the excess the lower the premium and the lower the excess the higher the premium.
Why you will need a car/vehicle insurance
- South Africa’s crime rates have skyrocketed and car theft and hijacking is no exception. The rate of car accidents have increased rapidly, hence all drivers and car users are in need of car insurance. On the other hand car repairs have become extremely Premiums prices are affect by the high rise of theft, hijacking and accidents.
- SAIA reported that between 65% – 70% car users are not insured. The risk is that if you are involved in an accident with a driver without insurance, the chances of getting compensation are at 0%.
- Having no insurance means you have to take care of your, injuries, property loses and car repairs alone.
What you need to know about car insurance
The Ombudsmen for short term insurance recovers R87 million for consumers in 2017, eNCA.com reports. Complaints resolved where approximately 10 000 in an average turnaround time of 131 days.
Type of car insurance
- Comprehensive cover -Cover your vehicle damage, injuries, fire, theft and third party.
- Third Party Fire and theft -insurers for other people damages vehicles, injuries and property as well as replacement in case of theft and fire.
- Third Party only- Covers others peoples vehicle damages and injuries alone. This cover is limited to the extent of not insuring damages that the insured has encountered.
- Limited Cover- Compensate the insured for vehicle, theft and fire as well as compensate other people’s injury and damages but well not cover for accidental damages for your vehicle.
- Liability to other people-