When it comes to vehicle insurance there are nearly as many myths flying around as there are uninsured vehicles. The bottom line is that an insured vehicle is a safe vehicle that can save you a lot of money in the case of an accident. Yet, the myths persist.
To help you reduce the costs of driving an unprotected vehicle, JustMoney contacted an industry expert to sift out truth from myth.
Tip: To get a car insurance quote, click here.
The older the driver, the more premiums they pay
According to Marius Steyn, underwriting manager at Santam, this isn’t true. A younger person who’s had their driver’s licence for a short time is likely to pay higher premiums. Age is not a determining factor for premiums.
Your personal car insurance covers business use of the car
Not true, according to Steyn. He says the policyholder has the option to insure the vehicle for business and private use. If your car is insured for private use, only claims that meet that criteria will be accepted.
Colour choice plays a major role in premium costs
Steyn says this varies from insurer to insurer. Some insurers consider colour and some don’t.
“Statistics have shown that red and black vehicles are a higher risk for accident damage than white vehicles,” says Steyn.
The insurance will pay out if you were a victim of remote jamming
According to Steyn, this is not entirely incorrect. He says most insurers exclude remote jamming and require that the theft be accompanied by forcible and violent entry into and out of the vehicle.
“Some insurers don’t exclude theft by means of car jamming, but if it can be proven that there was never an attempt to lock the vehicle, the claim may be rejected,” says Steyn.
The policy will cover damage caused by potholes
This is circumstantial, according to Steyn.
“Claims of this nature are dependent on the situation. Motorists are also able to claim from SANRAL (The South African National Roads Agency),” says Steyn.
Men pay more than women for car insurance
According to Steyn, this is the truth for most insurers, as females are perceived to have a lower risk profile than their male counterparts.
If another person drives the insured’s car, the driver’s motor insurance will cover them in the event of an accident
This statement is false, according to Steyn.
“The other person’s insurance would cover the third-party damage caused in the accident. The insurer of the vehicle would normally cover the damage to the vehicle,” says Steyn.
It’s advisable that the policyholder checks this upfront with their insurer to avoid any surprises, he says.
Having car insurance can save you a lot of money in the case emergency. Fill in this form to get a quote.