Car insurance can deny claims based on poor maintenance

Motorists are being warned that failing to maintain their vehicles could lead to short-term insurance claims being rejected, leaving them to cover the costs after an accident.

Industry experts say many consumers forget that insurance policies exclude wear and tear, gradual deterioration, and mechanical or electrical breakdown. Policyholders are expected to take reasonable steps to prevent damage and keep their vehicles in roadworthy condition.

This means ignoring advice to replace worn brakes, bald tyres, faulty suspension, or broken lights could have serious consequences when claiming.

Dewald Ranft, chairperson of the Motor Industry Workshop Association (MIWA), says insurers will assess whether poor maintenance contributed to an accident before approving a claim.

“If an accident is caused, or made worse, because a vehicle was not maintained in a roadworthy condition, the insurer can decline the claim.

“For example, if worn brakes prevent you from stopping in time, or bald tyres cause you to lose control in the rain, the insurer is within their rights to reject the claim,” he explains.

The National Financial Ombud reports that wear and tear, deterioration, and poor maintenance are among the leading reasons insurance claims are declined in South Africa. While often highlighted in relation to property, the same principle applies to vehicles. The South African Insurance Association (SAIA) agrees.

“Having insurance cover provides peace of mind, but it remains the vehicle owner’s responsibility to ensure the safe, efficient running of their vehicle,” says Themba Palagangwe, SAIA’s general manager of governance and transformation.

“With the increase in climate-related events such as storms, hail and floods in recent months, it is even more important for vehicle owners to be vigilant about repairs and maintenance. This not only improves road safety but also increases the chances of claims being paid in the event of an accident,” Palagangwe adds.

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Ranft advises motorists to:
• Service their vehicles regularly and keep records of work done.
• Act immediately on safety-related advice from a trusted repair centre.
• Ensure tyres, brakes, suspension, and lights meet safety standards.

“Maintaining your vehicle is not only essential for your safety and that of other road users – it is also vital to protect your insurance cover. A small, timely repair could save you from a massive financial loss,” he says.