Santam set to modify car insurance premiums

By Staff Writer

Despite the fact that cars depreciate in value, motor insurance premiums generally go up every year. But South Africa’s largest insurer, Santam, has pledged to adjust its systems to automatically take annual depreciation of vehicles into account of all the cars it insures. Santam did not commit to an exact date of its adjustments but it said that these would be made some time this year.
 

Santam said it made this change after it discovered that only 70% of cases saw a change in premium adjustments. “Initial feedback was a preference for advisers to review each client’s portfolio individually and notify us of vehicle value changes.  This is a very straightforward procedure.  We found, however, that adjustments were only implemented in 70% of cases, and decided to automate these this year,” said Donald Kau spokesperson for Santam.
 

Santam currently insures cars at their retail value using the Mead & McGrouther Auto Dealer’s Guide. While adjustments will be made to take depreciation into account customers may still have to do some legwork. Kau said that if customers believe their car is worth more or less than the retail value they are are welcome to send Santam a valuation certificate from a dealership.
 

Kau said the premiums will also be based on a number of other factors including the type of vehicle, its age, claims history, power-to-weight-ratio, location of the vehicle, age of the driver and the costs associated with repairs and parts. “It is unfair to assume that everyone is the same but that’s why you have brokers to help navigate in the process. The cost of car parts doesn’t for example depreciate annually and this is a significant factor in calculating the premium.”


 

Recent Articles

Featured Can you afford an ambulance in South Africa?

When a loved one is straddling the line between life and death, you won’t hesitate to call an ambulance. This week, Justmoney found out how much an ambulance ride costs in South Africa, whether you can refuse to get into an ambulance, and who pays the bill if you’re unconscious. 

Read more

Discovery Vitality: The impact it had on my health

It’s nearly 30 degrees outside, but my windows are closed to prevent further wildfire smoke from entering my bedroom. I’m hopping around, squatting and lunging my way into my “cardio zone” so that I can earn 200 points on Discovery Vitality and meet my weekly activity goals.

Read more

Rand runs out of steam in lead-up to budget speech

For all the foreshadowing that was done last week in terms of the two big speeches by the head of states in the United States (US) and South Africa (SA), very little happened as a direct consequence thereof.

Read more

The cover you need at every age and stage

Insurance is often neglected during people’s twenties and inflated during their forties. So, which insurance products should you pursue at which age?

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

President Hotel Easter Special

Price: From R1,500
When: 15 March to 30 April
Where: Cape Town

Kulula-Preskil Island Resort Special

Price: R16,999
When: 11 May -14 September
Where: Mauritius

A Touch Of Madness Tuck In Tuesday Special

Price: R70
When: Tuesdays
Where: Cape Town