Motor insurance covers your business if your vehicle (and its accessories) is lost or damaged. This also covers third-party damage if you are deemed to be responsible. Pre-existing damage is not covered, and your vehicle must be registered in South Africa to be eligible.
You probably need Motor insurance if you have any the following:
Your insurance policy will have its own specific list of insured events and exclusions. It is best to check with your insurer or the policy wording to confirm the details of your Motor insurance policy.
Some commonly covered and not covered items include:
Retail
The retail value (which is usually higher than market) is the average price a dealer would sell your vehicle for. In general, it is much easier to replace a damaged or stolen car when it is insured at retail value.
Market
The market value of a vehicle is defined as the price a willing buyer is prepared to pay a willing seller. The market value of a car is almost always lower than the retail value and takes into account a number of variables, including mileage, vehicle condition, service history and accident reports.
Third-party cover only
This will cover you for accidental damage caused to another person’s vehicle. This only covers the possessions of other people. Your car is not covered in the event of collision, theft or fire.
Third-party, fire and theft cover
This will cover you for everything mentioned in third-party cover (accidental damage caused to another person’s vehicle), and your car is also covered in the event of theft or fire. This type of insurance does not extend cover for accidental damage to your own vehicle.
Comprehensive cover
Comprehensive insurance covers accidental damage to your car as well as third-party damages, theft and fire. This type of cover will also be more expensive as it covers more events.
You should pick a combination of the above that makes the most sense for your specific insurance needs. The most common selections are retail and comprehensive.
Accident
Theft
The amount of cover is automatically based on your choice of cover (comprehensive; third-party; third-party, fire & theft), and selection of retail or market value.
Some people believe that choosing market value is the same as under-insuring your vehicle, because you are not always able to find an equivalent vehicle when looking for a replacement.
Retail value is usually slightly more expensive, but people generally find it easier to find a replacement vehicle after an incident.
The difference between market and retail value is explained thoroughly under the How much cover do I need section above.
Generally, the higher the level of risk that your vehicle is exposed to, the higher the cost of the premium.
Our insurers require that your vehicle has a tracking device if the value of the vehicle is above a certain value (about R400 000 for most insurers). If you say that you have a tracking device and it is found that you do not have an active tracking device, your claim may not be paid out.
Let your insurer or us know as soon as possible by either contacting the emergency line as per the policy schedule, logging onto your portal and submitting a claim, or drop us an email.
It is important to take as many photos as possible of the incident, especially if a third party is involved – photos should be taken of their vehicle damage, registration number, their driver’s licence and any other information which may be relevant. Incidents involving third parties should also be reported the to the police.
Insurance history gives the new insurers a chance to get to know what sort of client you are. If you have a good insurance history and few claims, you have an increased chance of having cheaper premiums.
It is very important to be honest when disclosing your claims history – if an insurer finds that you were dishonest, you may not be covered when you have a claim.
