Cutting through the Ts and Cs
MANY CONSUMERS find insurance terms, conditions, and processes tricky—but they don’t have to be! While the insurer tries to write its policy wording in easy-to-understand everyday English, if you don’t understand something, just ask.
Incorrect information leads to incorrect cover, and can cause issues at claim stage. It’s incredibly important that you know what you’re signing up for, and that you understand all the terminology—both while doing a quote, and afterwards.
This article cuts through the Ts and Cs to answer some of the most-asked questions by our customers.
What is under-insurance?
You need to insure your buildings, home contents, and portable possessions for the value of like-for-like replacements at today’s prices.
The insured value for your buildings must be enough to repair or rebuild your property, including the outbuildings, perimeter wall and swimming pool from the ground up, and must also cover professional and municipal fees, demolition charges, waste removal and making the site safe. If not, then you’re under-insured, and valid claims will be paid out proportionately.
Why must I have my car inspected?
Unless your car is brand-new, most insurers will make it a condition of cover that you have it inspected. Having the car inspected proves that it exists—un-fortunately, it happens all too often that people try to insure fictional cars in order to claim for a loss a few months down the line.
An inspection also notes any existing damage, which won’t be covered. Fraud prevention measures like these help to keep premiums down for everyone.
Who’s the regular driver?
This is the person who drives the insured car most often during any monthly period, and who’s noted as such on your policy schedule. If the regular driver changes, you must tell your insurer immediately as the risk profile that underpins your monthly premium may have changed.
Will my insurer cover a rental car?
You may choose to add car hire cover to your car insurance cover, so that you’ll still have wheels if the insured car is damaged but being repaired, or damaged and not driveable—provided that there’s a valid claim for such damage, or it’s stolen or hi-jacked, and not recovered.
Car hire is linked to your car cover. If your car is being repaired under any other cover, you can’t claim for car hire. Generally, a hired car will be available until your car insurance claim is finalised, for up to 30 days.
Can I choose my own provider to fix damage?
Insurers partner with reputable service providers so that they can manage costs, quality, and timeframes. For this reason, your insurer will most likely send your car to an approved provider. There may be exceptions if your car is rare, vintage, or collectable.
How can I help speed up a claim?
Firstly, if you’ve had a car accident, you must use your insurer’s approved towing service. Not doing so will add time and cost, so save the number on your phone now, and also check your policy document for any specific timeframes or requirements.
Call your insurer ASAP and within 30 days of the incident, and then do everything they ask as quickly as you can.
Wynand van Vuuren, client experience partner, King Price Insurance.
