Know Your Insurance Cover!

Are your most precious items protected?

We know that insurance can sometimes be tricky to understand, that’s why we’ve compiled these tips to explain what we mean by commonly-used phrases that you may see in your policy wording – and to help you to avoid some common pitfalls.

The difference between specified and unspecified Moveable items

All Risk Insurance, or Moveables, is the cover you should, literally, never leave home without. From sunglasses to cellphones, from wallets to watches, from cameras to computers, make sure your belongings are covered.

Generally, there are two Moveable Insurance options to choose from:

  • Unspecified Moveables – covers items valued at less than R1500* like jewellery, sunglasses and the contents of your handbag. As the items change from day-to-day, it would be impractical to list them each time you need them covered.
  • Specified Moveables – covers items valued at more than R1500* per item. So, if it’s valuable to you (such as your wedding ring or your laptop), you need to specify its value.

Pimp your car insurance

  • Car hire
    If your car gets damaged in an accident, is stolen or you are hijacked, it could be weeks until you are back in the driver’s seat, having the option of a rental car could save you money and relieve added pressures and worries of how to get to work and the kids to school. Consider adding car hire to your car insurance policy, so that you can have access to a rental car and can keep living your way!
  • Specifying vehicle sound equipment and other accessories
    Additional features like mag wheels, music systems, and sun roofs need to be specified when taking out your car insurance policy. They increase the value of your car - and thus the value of the risk covered, ultimately impacting your monthly premiums. If you don’t specify them, your car will be insured for a value that excludes them - and hence they may not be covered in the event of a claim.
  • Credit Shortfall
    Credit Shortfall covers you for the shortfall when the amount you owe (including residual amounts/balloon payments) exceeds the insured retail value of your car. In other words, it covers you for the gap between the retail price and the outstanding finance amount. In order to qualify for this, your car would need to be insured for retail value. Simply put, this covers you for the difference between the amount you owe the bank or financial institution and the amount that the vehicle is insured for, bearing in mind certain financial charges that are excluded from cover. 
  • Value Protect
    MiValue Protect is an optional add-on benefit for MiWay car insurance clients. In the event of a total loss (hijack, theft and if the vehicle is not recovered or declared a write-off), having MiValue Protect means that you could receive 10% of market value, 10% of insured value, or the difference between the market value and the new price, whichever is lower.

Just because you have insurance, doesn’t mean you shouldn’t take care of your things

In terms of home insurance, your insurer may state that claims will not be paid out if someone with authorised access to your property (for example, a tenant, service provider or even a guest of yours) damages or steals items from you. Take the necessary precautions when giving people access to your property and make sure that you keep your valuables in a locked safe.

When in your car, keep your belongings where they will not be in plain sight and end up as easy targets or temptation for criminals. Concealing them in the car’s boot or your cubby hole is required by most insurers – both while you’re on the move or parked. And remember to physically check that your car is locked before walking away from it!

What are the types of car insurance available?

There are various types of car insurance cover available in South Africa. They are "comprehensive" car insurance, "third-party, fire and theft" cover, "third-party only" cover and "total loss" cover. Here’s an explanation of what these really mean: 

  • “Comprehensive” car insurance covers theft, hijacking, and damage caused by accidents or weather conditions. It also offers coverage if you are responsible for an accident and need to pay for damages caused to another vehicle, as well as intentional damage to your vehicle by others. This option is the most extensive car insurance option available.
  • “Third party, fire and theft” cover will handle the damage costs if your car is damaged or lost due to theft or fire-related incidents. It also covers damage you may have caused to another person’s car during an accident. However, with third party cover, if you were to be involved in a car accident, then you would have to cover the repairs or replacement costs of your car on your own.
  • "Total loss" cover provides cover to clients for the total loss of their vehicles, only when the vehicle is declared a write-off or when the vehicle is stolen and not recovered, as well as limited third-party liability if selected. Accidental damage that does not result in a total loss is not covered.

Understand the insured value of your vehicle

Cars are not insured for their purchase price; instead, policyholders can choose between insuring for the retail, market or trade value of the vehicle:

  • Retail value (the recommended insured value - the current selling price on the dealer’s floor as per the TransUnion Dealers' Guide)
  • Market value (the average between the vehicle's retail and trade values)
  • Trade value (the average price that a motor dealer will pay you for the vehicle as per the TransUnion Dealers' Guide)
  • Special agreed value (which applies to unlisted, vintage and collectors' vehicles, caravans and trailers where a valuation is given by an appropriate approved source)
  • Values also take into account the condition and mileage of the vehicle.  There are no guideline adjustments for service history and accidents, but these are included when assessing the condition.

*All information is considered true and accurate at the date of publication.   

If you’d like to get in touch to get any additional information, please give us a call on 0860 646 464 and one of our friendly agents will answer any of your queries!

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