You may wonder why you have to answer so many questions posed to you by the insurer before signing up for car insurance. There are some really good reasons for this, as shown below.
Risk profiling is like a job interview
Traditional insurance companies need to know who they are dealing with when a person approaches them for car insurance. Each driver, right from the start, builds up a track record of how they have been driving, how many accidents they have had, and so on. Accurate information needs to be obtained from the prospective applicant, and hence the many structured questions by the insurer.
Most comprehensive car insurance premiums are based on your risk profile
Car insurance premiums of major, traditional insurers mirror the risk profile you may have. For instance, if you have a bad driving record, having been involved in many accidents, then you will have a bad risk profile. The more risky you are to the insurer, the higher the premiums will be, and vice versa.Below are some general questions that insurers could ask you, when taking out car insurance. Any missing information to these questions at the time of an accident may cause the ensuing claim to be rejected. 1,2,3
Who is the regular, licensed driver?
The monthly premiums you pay to the major insurers are based on your risk profile, as the regular driver, and not someone else’s.1,2 So when a friend of yours wishes to borrow your car, you need to check with your insurance company whether this is permitted or not. What is critically important, is that an unlicensed driver must never be allowed to drive your car, as it is against the law in the first place. If an unlicensed driver has an accident with your car, the claim will be rejected outright.
Is your car roadworthy?
A ‘small’ issue such as your indicators not working properly at the time of an accident, may well invalidate your claim. So it is important to ensure that your car is roadworthy at all times. Check your tyres regularly to make sure that the depth of the tyre tread is still legal. If your car is involved in an accident having non-roadworthy ‘bald’ or smooth tyres, the claim may be rejected. 1,2
Your age
If you have just obtained your driver’s licence, your risk profile will be a lot worse than that of a person who has been driving for 20 years. This is partly due to the former’s lack of driving experience.
Is write-off cover included in your car insurance policy?
Make sure that write-off cover is part of your policy, because otherwise you may not be compensated. 1,2
What alarm system is fitted to your car?
Your insurer may instruct you to have an immobiliser installed in your car if it doesn’t come with an alarm system. Some car insurance companies will only compensate you if your car has been fitted with a tracking device.
Where do you park your car during the day and night?
Some insurers want to know how exposed to possible theft your car is during the day and night. If you have to park on the street, at your workplace and home, the greater risk of theft may cause your premium to rise. Also, they ask if you live in a high-crime area or not.Being truthful about answering all these questions will not only provide a clear picture to the insurer about your risk profile, but it should also prevent any claim rejections later.
Why not use Prime South Africa’s online insurance purchase platform and buy affordable car insurance?
Unlike what you have read above, Prime does not increase the premiums depending on your risk profile. Prime uses a non-discriminatory underwriting method, so your premium is not affected by gender, where you live, or whether you have tracking devices installed or not. So what is stopping you from buying affordable car insurance online? You can do it whenever it suits you; it’s quick and straightforward, and you can specify what you want in your policy. Audio and video materials are available to assist you, but if you get stuck, please use our call-back facility. Learn more about car insurance here.
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