10 Questions to ask before accepting car insurance

If you are one of the millions of motorists who commute on any of our country’s busy roads on a daily basis, you will be alarmed to discover that only 30 out of 100 vehicles around you are insured.

Adding gravitas to this alarming statistic is our country’s road accident rate, which contributes to thousands of injuries and fatalities every year. Coupled with the fact that one car is hijacked in South Africa roughly every 36 minutes, isn’t it about time for South Africans to start viewing car insurance as a necessity as opposed to a luxury?

This is according to Jarrod Berman, managing director of MotorHappy, who adds, “In this day and age, and especially in light of the amount of motor related incidents that occur in our country every day – it is up to motorists to accept the responsibility when it comes to their insurance policies.

“While it is compulsory for motorists to take out insurance when buying a new or second-hand car, the majority end up cancelling their policies as soon as they drive out of the dealership. By doing this, they’re ignoring the danger signs which loom ahead, simply assuming that the worst will never happen to them.”

Berman believes that one of the mitigating factors why motorists renege on their car insurance policies, is not only for financial reasons but also due to a lack of understanding and education when it comes to insurance.

“Ever so often, consumers buy into products which they don’t fully comprehend. While ‘in the moment’, they might sign on the dotted line without asking some crucial questions. And then end up cancelling a couple of months down the line – or when the economy pinches at its hardest – because they view their policies as an unnecessary evil or ‘luxury’,” he adds.

“It’s thus imperative for consumers to go armed with as many questions as possible when buying any insurance products, as this will ensure that they know exactly what they’re signing up for – no surprises.”

Below are some of the top questions which MotorHappy’s call centre, which handles on average 3 000 calls a day, recommends consumers ask their insurance company before saying yes:

1. What is the difference between the retail and market value of my vehicle?

2. Will original (OEM) parts be used for the repair of my vehicle?

3. Can I have my vehicle repaired at a panel beater of my choice?

4. In the case of an accident, who is allowed to tow my vehicle?

5. What is the difference between private and business use?

6. What is an excess?

7. If I am not at fault in an accident, am I still liable for the excess?

8. Is my vehicle covered anywhere else in Africa?

9. Is car hire included in my premium?

10. What is comprehensive insurance?

“Apart from unpacking and uncovering the basics of your insurance policy beforehand, for example what it covers and what it doesn’t, it’s also a good idea to do your homework and sign up with a company which has a reputation for paying out on claims,” concludes Berman.

“Far too often, motorists end up with astronomical bills which they have to cough up for purely because they didn’t ask the right questions, and which their insurer failed to tell them about upfront for the fear of losing out on a potential sale.

“That’s another reason why it’s crucial to do your homework, ask the necessary questions and go with an insurer which is not only compliant but which ultimately also has your best interests at heart.”

Information supplied by MotorHappy