Latest news and articles about Car Insurance in South Africa.
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.
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.
“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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
False. Nothing prohibits you from changing to another car insurance company. There may be a cancellation fee which in most cases is quite low.
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.
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.
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.
“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.