Guiding consumers since 2009

Older people pay more for car insurance and other myths busted

By Athenkosi Sawutana

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.

READ MORE: How updating insurance information can save you money.

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.

Recent Articles

Featured How to spend a lumpsum for great returns

Imagine you win the lotto. Anyone in this position would be ecstatic! But once your excitement settles down, you’ll have to consider what’s the best thing to do with this money.

How to identify an investment scam

Many people invest a lot of money for their future and that of their offspring. Unfortunately, some of them never reap the benefits because the investments were scams. Luckily, there are ways you can find out if an investment opportunity is too good to be true.

Financial conflict can lead to divorce – here’s how to prevent it

Talking about money is an intimate matter, and it may be uncomfortable for couples who’ve managed to avoid this discussion. However, it will become necessary at some point or other. Do you think you’re ready to talk to your partner about money?

This is how much you should spend on accommodation

As your salary changes over time, your expenses will change too. But what if you’re spending an exceedingly large percentage of your income on accommodation? Is it feasible or even recommended in our current stressful financial climate?


Get 50% off your friend’s treatment at Mangwanani Spa

Price: from R250
When: Until 30 August
Where: KZN and JHB

Telkom LTE lockdown Deal

Price: R369 per month
When: Until 31 August 2020
Where: Nationwide

Save up to 20% on your car insurance with MiWay

Price: Available on request
When: Daily
Where: Nationwide

Latest Guide

Guide to debt rehabilitation solutions