Guiding consumers since 2009

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 Ensure your family doesn’t feel the impact of your retrenchment

Retrenchment doesn’t only change the way you view yourself; it also alters the relationship between you and your family. Things can go from good to bad within a short space of time. But you can do something to prevent your family from feeling the impact of retrenchment.

Someone got injured on my property – now what?

Life is unpredictable and no matter how careful we are, accidents happen. But what if someone has an accident while visiting your house? Your guest could fall off the stairs, slip on the floor or get bitten by your dog. 

Are you ready for a house upgrade?

You moved into your home knowing one day you would need to make some changes to turn it into your dream home - add a new bedroom, a second bathroom, build a double storey or even move out.

How income protection can help you when you’re sick

Your greatest asset is probably your ability to earn an income, which provides a certain lifestyle and the capacity to take care of your dependants. That’s why it’s so important to protect your income against unforeseen illness or injury and to provide for your dependents after your death.

Deals

Baby Boom Toy Specials

Price: Available on request
When: Daily
Where: Online

Readers’ Warehouse Book Bundle Deals

Price: From R40
When: While stocks last
Where: Online

Bidorbuy Crazy Wednesdays

Price: From R1
When: Daily
Where: Online


Latest Guide

Complete guide on personal income tax