What is the difference between the retail- and the market value of my vehicle?
Retail value is the likely selling price of the vehicle by a motor dealer to a purchaser. This is the possible value that a motor vehicle ‘retails’ for if you were to buy it from a dealership. The retail price is the closest value to the replacement value or cost of your insured motor vehicle.
Market value, when referred to in car insurance, is the average between the likely trade and retail values of a vehicle.
Does my premium decrease in line with the value of my vehicle?
The annual premium review takes into account the depreciated value of the vehicle. However, this is not the only factor which determines the premium. Accident damage results in more claims than write-offs or stolen vehicles. The cost of repairs and parts constantly increase with inflation. The Insurer thus need to increase the premiums to stay aligned with the cost of repair.
Why do I need to install extra security devices in my vehicle?
Vehicle theft is an unfortunate but very real part of everyday life in South Africa. Insurers take a preventative approach to the problem by requesting the installation of quality anti-theft devices in order to minimize or prevent vehicle thefts and hijackings. Some vehicles present a higher risk than others when it comes to theft and Insurers may require a tracking device in order to increase the potential of recovering your vehicle.
Can I have my vehicle repaired at a panel beater of my own choice?
The choice of any panel beater rests with the Insurer and they have established a selected and approved panel of repairers whose work is guaranteed for a certain amount of months thereafter. You may elect to choose your own repairer, although we cannot guarantee the quality of their workmanship. You will be required to sign a disclaimer to indemnify the Insurer of any follow up work or bad repair jobs, thus it is better to use the Insurer approved panel beater/repairer.
If my stolen car is recovered one day, can I buy it back from the Insurer?
The Insurer has salvage contracts with external companies which sells all recovered vehicles on auction. You would need to deal directly with the salvage company.
Home & Building
How do I calculate the replacement/rebuilding value of my building?
Most Insurers cover the buildings on a new for old basis. This means that we replace old, damaged items with new ones following a claim (e.g. replacing a burst geyser with a new one).
In calculating the replacement value of your property, the Insurer considers the cost to demolish damaged structures, removal of debris, professional and municipal service fees and the actual costs for materials and labour before any new construction can start. These costs, like many others, are determined by the building industry.
How do I determine the value of my contents?
We can provide you with an inventory to assist you in listing the contents and determining their values. We also have specialist advisors who can assist you with any queries you may have regarding this. It is of high importance to always use the current replacement value and not the value that the item cost a few years back.
Will my goods be covered for damages while I am moving from one residence to another permanently?
Yes, you’ll receive cover if the vehicle carrying the goods has been stolen, overturned or involved in an accident and the goods are damaged. Should you make use of a professional company for transit of your contents and their employees break/steal an item/s from your contents, this will not be covered.
What happens if I underinsure my contents?
If you are underinsured, you carry part of the risk should there be a loss. For example, if your contents are covered for R100 000 and the assessor determines you should be covered for R200 000, and you lose R20 000 worth of contents in a burglary, we will settle R10 000 and you will be responsible for the remaining portion of the loss. (This is the principle of average when the percentage that you are underinsured by is applied on a claim).
Can I cover my computer for business use under my contents cover?
Yes, if you inform us that you use the laptop for business purposes. There must be a financial interest from your side. Should the laptop be the property of the company you work for then it needs to be insured by the company.
What forms do I need to complete to submit a claim?
Most Insurers will register your claim telephonically. However, some Insurers do still have claim forms that need to be completed and submitted. Speak to your broker to find out what the claims procedure is.
Can I use my own service provider?
The choice of any service provider (e.g. panel beater) rests with the Insurer and they have established a selection of approved service providers whose work is guaranteed. You can elect to choose your own repairer however we cannot guarantee the quality of their workmanship.
Will my Premium be affected if I submit a claim?
Yes. All Insurers do re-underwriting after a claim to correct the claims ratio.
I paid my excess and I wasn’t the one who caused the accident. Do I get my excess back?
The Insurer’s legal department will attempt to recover your excess from the person who caused the accident. Although they do their best, the recovery is not guaranteed. It can be a lengthy process if the other person disputes their liability or if we have to trace this person and follow up on missing information.
What is an excess?
An excess is the specified amount that you are liable to pay in the event of any claim being settled. For example, if you are in an accident and the damage amounts to R20 000, you will pay the first R2 000 (or the amount you chose to pay when your cover started) to the panel beater when you collect your vehicle once it is repaired. The Insurer then pays the difference to the panel beater.
What is a fixed excess?
A fixed excess means that no matter what the value or nature of the claim, you only pay the agreed excess amount. Insurers offers you a fixed vehicle excess which means that whether your car is damaged in an accident, written-off, stolen or hijacked you will only pay the fixed excess applicable. There are no additional excesses unless specified in the policy schedule. Insurers usually charge you a percentage of the claim, so if your stolen vehicle’s replacement value is R100 000, and the excess is 5% of the claim amount, then you will have to pay the first R 5000.
Is it worth it to select a higher excess payment?
A higher excess payment will give you the benefit of a lower premium but you will be liable for the amount chosen in the event of a claim.
If I’m not at fault in an accident, why must I pay an excess?
You are always liable for the excess. Insurers do not place blame as condition in order to determine whether you need to pay an excess or not. When you claim through your insurance policy and there is an excess applicable, you will be liable to pay the excess. Should the recovery process from the legal department be 100% successful then only the excess will be paid back to you in full.
Can I pay my premium via the Internet?
No, Insurers only work with debit order payments. This is so that we can ensure that your premiums are allocated on time and to avoid a delay in assisting you on any claims / incidents.
My premium has been returned, can I pay it into your account?
You usually have a grace period of at least 15 days in which to pay premiums that were returned by your bank. You can contact your Broker and inform them that the debit order was unsuccessful. Some Insurers will allow a double debit for the next month but this has to be arranged with your broker before the 15th of the month in which the debit order was not honoured.
Why did my premium increase but my vehicle’s value decreased?
The annual policy review takes into account the depreciated value of the vehicle. However, this is not the only factor which determines the premium. The majority of claims paid are for accidents and not write-offs or stolen vehicles. The cost of repairs and parts constantly increase with inflation. The Insurer thus need to increase our premiums as it costs more to repair vehicles.