Frequently Asked Questions about Car Insurance in South Africa
August 22, 2016
Car insurance can be a complicated matter with a lot of legal jargon. Usually, only professional lawyers fully understand these terms. For this reason, many people who must take out insurance on their cars have many frequently asked questions.
They like to have these answered thoroughly. Preferably, they want this to happen either before they take out a policy or at least before they make a claim.
Here are some of the more frequently asked questions, along with the answers.
Question – What is the difference between comprehensive and limited car insurance?
Answer – Comprehensive coverage is what its name implies. It insures the car against a complete list of instances in which the vehicle is damaged or lost. And that list includes natural disasters including flooding and fire. Limited insurance allows you the option to pay lower insurance costs by choosing not to insure your car against damage caused by some of these circumstances.
Question – Can a car be insured even if it is old or unusual?
Answer – Yes, most insurance companies, although they have standard charts that rate the value of a car by make and year, will also carry out individual assessments. So the corporation and car owner can agree on a value of any car not listed.
Question – How do ‘retail’ and ‘market’ values differ?
Answer – The retail value is the price you could expect to pay if you were going to buy a similar make of car of the same year. The value is higher than the market value. You can insure your car for its market value to save on insurance premium payments.
More Frequently Asked Questions
Question – If my car is involved in an accident, how long do I have to wait before submitting a claim?
Answer – As long as your policy is paid up to date, then you have the cover. And so there is no waiting period necessary before you can make a claim.
Question – Does the type of car make a difference to the insurance?
Answer – Not only does the make of car make a difference to your insurance policy but its year of manufacture also does.
Question – If a friend is driving my when it is involved in an accident, can I still claim?
Answer – Yes, providing that your friend meets all the terms of the insurance agreement, such as being a legally qualified driver.
Question – Why is there a difference between private use, professional use and business use for vehicle insurance?
Answer – Private use reflects that you use your car for personal use, such as going to work or the shops. Professional use indicates that certain people may use their car to carry out their professional duties. Such professions include doctors making home visits.
Business use means that the owner uses the car for carrying out business. The different types of use reflect how much the owner uses the vehicle. Therefore the insurer assesses the likelihood of an incident involving the vehicle. Therefore the price of each of the different policies may vary accordingly.
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All info was correct at time of publishing