You take out Vehicle insurance, glance over the policy and sit back and relax,
confident that all is well. Unfortunately, it is not as simple as that. It is
important to read your insurance policy so that you are familiar with the terms
and conditions and possible exclusion clauses. Let us shed some light on the
aspects of car insurance that you need to know about...
Know the promises you're buying
Taking out Vehicle insurance means that you will be paying your insurance
company to pay out on certain misdemeanours in the event of uncontrollable
circumstances. The onus is on you, the insured, to know exactly what these
circumstances are and what your motor insurance cover will give you, despite
their promises.
Keep the promises that YOU are
making
When taking out vehicle
insurance, you need to provide a lot of information. Insurance companies need
to know the type of vehicle that you drive and who will be driving it as well
as where the vehicle is kept overnight. This information is used to determine
your cover and your insurance premiums. If this information is not correct or
(deliberately) false, you will run the risk of not being paid out for a claim.
Factors that influence the cost
of Vehicle
insurance premiums
There are several factors that
determine the cost of your car insurance. When your car is damaged or stolen,
the insurer will pay out your claim based on various factors that are
established before the policy is finalised.
Whether you drive a bakkie, a
sports car, a family car or a 4x4, some vehicles cost more to repair or replace
than others. Certain types of cars are more at risk of being hijacked or stolen
than others.
The age and condition of your
car:
The age of your car influences
your premiums as well. An older car may cost less to repair or replace and it
may be more challenging to find replacement parts. When insuring a second hand
car, make sure that you get an AA test certificate so that you can negotiate
lower insurance premiums.
How secure your car is
Where you live and whether your
motor vehicle is locked away securely at night also determines your insurance
premium. If it is fitted with anti hijacking and tracking devices, premiums are
usually reduced.
The age of the driver
First time drivers are often
penalised through higher premiums until they have proven to be responsible
drivers. Conversely, drivers over the age of 25 who are generally more
experienced often get discounts on their insurance costs.
Insurance claims evaluation and
payout
If your vehicle is damaged the
insurance company will first establish whether the quote you submit for repairs
is reasonable, after which the damage will be repaired. If the cost of repairs
to your damaged vehicle exceeds 70% of the car's value, the insurer may decide
to write the car off and pay out the market value of the vehicle instead.
Vehicle insurance is a contract in which the insurer assumes
responsibility for any loss or damage the insured may incur. It is important to
read your insurance policy carefully to confirm that you have a thorough
understanding of the terminology, exclusion clauses and all terms and
conditions.
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