It can be really upsetting if your car insurance company deny your claim. It doesn’t mean that because you have car insurance, you will get paid for everytime you submit a claim. The main reason why car insurance companies may deny your claim, according to Carinfo.co.za, is to avoid fraud and to ensure that you as the insurer keep to the terms and conditions of your policy. The website gives the following 10 reasons why companies may deny an insurance claim.

  1. You have not been paying your car insurance premiums

According to Carinfo.co.za, one of the biggest reasons why car insurance companies would deny your claim is due to non-payment of your insurance premiums. Make sure you pay your premium on time every month and spare yourself the drama.

  1. The driver or car is not ‘In Order’

“Generally, an insurance policy covers a named driver (or drivers) and a certain car in a certain condition. If the driver during a car accident wasn’t the driver named in your policy, then your claim will be denied,” it is written on Carinfo.co.za.

The same goes for if the car you want to claim for is not named in your policy. Many policies state that the insured car must be roadworthy. It will most often be the case that there is a connection between the state of your vehicle and the cause of the accident. Don’t take the risk, put your car through a roadworthy test and ensure your safety.

  1. You neglected to disclose certain information

Always be honest when filling out an application form for vehicle insurance. The insurance company will ask a lot of questions regarding your prior insurance record, your driving record, your health and credit. Failure to do so, can result in the insurance company denying your claim, even if your monthly premiums are paid up to date.

  1. Driving recklessly

Always stick to the rules of the road and adhere to the speed limit. If your insurance company can prove that you were driving recklessly like missing a stop sign or speeding, they can deny a claim. This is called a “failure to take care” clause.

  1. Your vehicle was stolen

Even if you weren’t involved in an accident and your vehicle was stolen, there may still be some reasons why your claim would be rejected. Adequate security precautions are crucial for many insurance companies. This includes a lock up garage, among other things. If you stated that your car is locked in a garage every night and the insurance company should find out that you didn’t actually have the specific security measure in place or that you stated that you have but in fact didn’t, your insurance company may reject the claim. Having these security measures in place may also reduce your monthly premium.

  1. Total Loss Policy

A total loss policy is when the insurance company will only give a pay out if your vehicle is completely destroyed or rather beyond repair. It is not a general policy insurance meaning that the insurance will not pay for damages to your car or repairs. Make sure you read the terms and conditions of your vehicle insurance policy careful and make sure what type of cover you have.

  1. Telematics says otherwise

Most car insurance companies will demand that a telematics device is fitted into your vehicle which will record driving data. It can also prove, after an accident, if indeed you were driving safely as you thought. If the telematics device says you were not driving responsibly, the insurance company may deny your claim.

  1. Drunk driving

If you were out for a drink and were involved in a car accident, the insurance company may refuse to pay out. Being drunk doesn’t mean you have had 10 beers but rather if you failed a breathalyzer test.

  1. Driving for business, not pleasure

Be upfront with your insurance whether an insured vehicle is meant for driving for business and not for personal use. In the event that you should have an accident while driving as a business, your claim may be rejected.

  1. You’ve reached your coverage limit

According to Carinfo.co.za, a car insurance policy in general, will cover you for up to a certain amount, but that amount is a total amount. This means that should you be involved in another accident in the same year, the company can deny your claim. The reason will be that you have used all your coverage.

 

 

It can be really upsetting if your car insurance company deny your claim. It doesn’t mean that because you have car insurance, you will get paid for everytime you submit a claim. The main reason why car insurance companies may deny your claim, according to Carinfo.co.za, is to avoid fraud and to ensure that you as the insurer keep to the terms and conditions of your policy. The website gives the following 10 reasons why companies may deny an insurance claim.

  1. You have not been paying your car insurance premiums

According to Carinfo.co.za, one of the biggest reasons why car insurance companies would deny your claim is due to non-payment of your insurance premiums. Make sure you pay your premium on time every month and spare yourself the drama.

  1. The driver or car is not ‘In Order’

“Generally, an insurance policy covers a named driver (or drivers) and a certain car in a certain condition. If the driver during a car accident wasn’t the driver named in your policy, then your claim will be denied,” it is written on Carinfo.co.za.

The same goes for if the car you want to claim for is not named in your policy. Many policies state that the insured car must be roadworthy. It will most often be the case that there is a connection between the state of your vehicle and the cause of the accident. Don’t take the risk, put your car through a roadworthy test and ensure your safety.

  1. You neglected to disclose certain information

Always be honest when filling out an application form for vehicle insurance. The insurance company will ask a lot of questions regarding your prior insurance record, your driving record, your health and credit. Failure to do so, can result in the insurance company denying your claim, even if your monthly premiums are paid up to date.

  1. Driving recklessly

Always stick to the rules of the road and adhere to the speed limit. If your insurance company can prove that you were driving recklessly like missing a stop sign or speeding, they can deny a claim. This is called a “failure to take care” clause.

  1. Your vehicle was stolen

Even if you weren’t involved in an accident and your vehicle was stolen, there may still be some reasons why your claim would be rejected. Adequate security precautions are crucial for many insurance companies. This includes a lock up garage, among other things. If you stated that your car is locked in a garage every night and the insurance company should find out that you didn’t actually have the specific security measure in place or that you stated that you have but in fact didn’t, your insurance company may reject the claim. Having these security measures in place may also reduce your monthly premium.

  1. Total Loss Policy

A total loss policy is when the insurance company will only give a pay out if your vehicle is completely destroyed or rather beyond repair. It is not a general policy insurance meaning that the insurance will not pay for damages to your car or repairs. Make sure you read the terms and conditions of your vehicle insurance policy careful and make sure what type of cover you have.

  1. Telematics says otherwise

Most car insurance companies will demand that a telematics device is fitted into your vehicle which will record driving data. It can also prove, after an accident, if indeed you were driving safely as you thought. If the telematics device says you were not driving responsibly, the insurance company may deny your claim.

  1. Drunk driving

If you were out for a drink and were involved in a car accident, the insurance company may refuse to pay out. Being drunk doesn’t mean you have had 10 beers but rather if you failed a breathalyzer test.

  1. Driving for business, not pleasure

Be upfront with your insurance whether an insured vehicle is meant for driving for business and not for personal use. In the event that you should have an accident while driving as a business, your claim may be rejected.

  1. You’ve reached your coverage limit

According to Carinfo.co.za, a car insurance policy in general, will cover you for up to a certain amount, but that amount is a total amount. This means that should you be involved in another accident in the same year, the company can deny your claim. The reason will be that you have used all your coverage.

 

 

Car Insurance

According to Investopedia, car insurance is a policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident. Instead of paying out of pocket for auto accidents, people pay annual premiums to an auto insurance company; the company then pays all or most of the costs associated with an auto accident or other vehicle damage. You are expected to pay a monthly premium which may vary depending on certain factors like your age, gender, driving experience etc.

Comprehensive Cover/Insurance

Comprehensive cover or insurance provides protection for the insurer in the event of physical damage, caused by other factors than collision or theft of the insured vehicle. This includes fire damage or a cracked windshield. – www.clements.com

Third-party Insurance

Third-party insurance offers insurers the legal minimum level of cover, and is the most basic form of insurance on the market. For example if you drive into another car’s rear and cause damage to the bumper and injure the driver. This is when your third-party insurance will cover the cost of the other person’s car and medical expenses. You are however not covered for damage to your own car or any injuries you suffered. For that, one needs comprehensive cover. – www.confused.com

Home Insurance and Household Insurance

Home insurance covers the actual building that includes the structure and permanent fixtures like bricks and mortar. Household insurance relates to movable possessions such as furniture and electrical appliances. This type of insurance covers a range of contingencies, including, but not always limited to, theft, acts of nature like lightning, storm, flood or snow as well as damage caused by fire, power surges and subsidence. – www.insurancechat.co.za

Gap cover

According to Cover the Gap, Gap cover is if medical practitioners charge in excess of the tariff rate at which the member’s medical aid reimburses the client for procedures performed in hospital. The shortfall will be for the member’s account. This can be as much as three of four times the Reference Price List tariff or NHRPL.

Grace Period

Etienne du Toit from Absa Life wrote on FANews that a grace period is when premiums are not paid for two consecutive months, the policy will lapse and the holder will not be able to enjoy any further cover. But a grace period gives the policy holder a chance to catch up with payments whilst their cover remains in place. According to the Long Term Insurance Act, the norm is to allow a grace period of 30 days.

Liability Cover

According to www.clemens.com, liability insurance is the kind of insurance that pays and renders service on behalf of an insured for loss arising out of his responsibility, due to negligence, to others imposed by law or assumed by contract.

Out-of-Pocket Limit

This is the largest amount of money you can pay towards the cost of your healthcare every year. After you have paid enough in deductibles, co-pays and co-insurance to reach your out-of-pocket maximum, your health insurance company will pay for the rest of your health care for that year. – www.abouthealthinsurance.com

Travel Insurance

According to www.wikitravel.org, travel insurance is a short-term insurance available against travel-related emergencies and expenses. This may include trip cancellation insurance, travel medical insurance, evacuation-only plans and flight insurance.

 

 

 

 

 

 

 

 

 

 

What determines my car insurance rates?

Some may describe motor vehicle insurance as a necessary evil but the matter of the fact is that even if you are the most cautious of motorists, you put yourself in great financial risk if you drive an uninsured vehicle.

This is according to the Arrive Alive website, article on “Car Insurance and Road Safety”.

Various factors can contribute to the set amount one has to pay to insure your vehicle. Arrive Alive looks at some of the factors that can influence your monthly payments in South Africa.

  • Comprehensive cover: The more extensive the insurance cover is that you choose, the more expensive the policy will be. Comprehensive cover is more expensive than third party insurance.

 

  • Type of vehicle: The type of vehicle you choose to drive whether it is a 4×4, sporty car, family car or bakkie will influence your insurance premiums. This may be due to the fact that some vehicles cost more to repair than others whilst some cars are more at risk of being stolen or hijacked. Safety features of your vehicle such as airbags may push up your premiums due to the cost involved in replacing them.

 

  • How old is your vehicle? The age of the vehicle will have a definite influence on your premium. “This is because an older vehicle may cost less to replace, but it may be difficult to get parts for the vehicle and in general it will be more at risk of burning out or failing in one or other way,” the article states. To ensure lower rates on pre-owned cars, get an AA test certificate.

 

  • Sport cars: Sporty vehicles will be more costly than a family car because of its power and speed. Sport car drivers are more likely to be younger and less responsible than drivers with family cars.

 

  • Your address: Your address and whether or not your car is kept in a locked garage at night will affect the cost of the insurance policy.

 

  • Do you have a tracking device in your car? Your insurance premium may be reduced if you have a tracking device in your car.

 

  • Are you over 25? Human factors influence your premium such as your age. If you are over 25, you will get a slight discount on your car insurance since you would have gained experience. Other human factors include your gender, driving record and when you obtained a driver’s licence.

 

  • Nominated drivers: Make sure your insurance knows who the nominated drivers are of a specific vehicle. Future claims may be rejected if the drivers are restricted.

 

  • Include your car with your household insurance: It generally costs more to insure your car separately (in a “stand-alone” policy) than it does to include it in your household contents insurance policy.

 

  • Cash back options: You may qualify for a no-claim bonus after a specific period if you did not submit a claim. This can mean money in your pocket.

 

  • Negotiate your excess: All insurance companies will require the policy holder to pay a certain amount of excess in the case of a claim. Even if the incident was not your fault. Try to negotiate the amount of excess that you have to pay in case of a claim. Remember, the higher the excess, the lower the premiums and vice versa.

 

 

 

It was found in 2013, that 65% of vehicle owners do not have insurance. What can the reason be? According to Carinfo.co.za, there are 6 car insurance myths that one must not believe.

1. I don’t need/can’t afford car insurance

It does not matter if you’re a great driver, accidents can still happen. For this reason, it is advisable to have car insurance. Shop around for car insurance and you might be surprised. Chances are that you can afford car insurance and you do need insurance.

2. I have to wait for my old insurance to expire

False. Nothing prohibits you from changing to another car insurance company. There may be a cancellation fee which in most cases is quite low.

3. Your car insurance will not pay your auto loan if your car is destroyed

Sorry, this is not going to happen. Your insurance is based on how much your car is worth at the moment of the accident, whilst an auto loan is based on your car’s worth at the time of purchase.

4. In case of a break-in, the insurance will cover everything in my car

Your insurance company will only pay for stolen items that are physically attached to your car like the radio. If you want to insure carry things like computers, luggage, cameras etc that may be in your vehicle, you will need Person Effects Insurance.

5. If my friend crashes my car, I won’t get paid

This will only apply if you have specified someone who cannot drive your car. If you have comprehensive or collision insurance, the insurance company will pay for damages, regardless of who the driver is.

6. “Is it because I’m a woman?”

It is true that your age, gender, experience and car model do affect the amount you have to pay monthly for car insurance, one has to remember that this is based on statistics.

“It has been proven that younger drivers are statistically more likely to have accidents and therefore they generally pay higher premiums,” according to Carinfo.co.za.

The only way to get around this is to be a safe driver. You may get premium discount for having a clean driving record. You can also consider installing a telematics device in your car to cut on premium costs.

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