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Thread: Managing your vehicle insurance costs

  1. #1
    Site Caretaker Dave A's Avatar
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    Managing your vehicle insurance costs

    At the beginning of each year I sit down with my insurance broker to look at the insured value of my assets. The first step is to work out what insurance would pay out in the event of a total loss and make this the insured value.

    This story makes me think I've got a good broker.
    Car premiums rise when they should come down
    The financial advice ombud says insurers and brokers should be telling you about the depreciation in the value of your car, writes Neesa Moodley-Isaacs

    November 29, 2008 Edition 1

    Neesa Moodley-isaacs

    The Financial Advisory and Intermediary Services (FAIS) ombud, Charles Pillai, has put the brake on insurers and brokers who have been jacking up car insurance unnecessarily to earn higher premiums and commissions.

    Pillai this week ruled against Absa Insurance Brokers for failing to inform a client, Anthony Naidoo, that bringing the insured value of his Toyota RunX into line with its market value would reduce his premiums and save him money.

    Thousands of motorists pay premiums based on the original retail value of their vehicles without realising that, in the event of a claim, they will receive compensation based on the market value of their vehicles at the time of the claim.

    Pillai also criticised the insurer for not mentioning in Naidoo's contract renewal letter that a reduction in the value of the vehicle could result in lower premiums.

    Pillai says he is confident the Financial Services Board (FSB) will take appropriate regulatory action to stop them from doing this.

    Dube Tshidi, the chief executive of the FSB, says he has not yet studied the determination. "If I find this issue merits further investigation, I will definitely be taking it up with the insurance industry," he says.
    Full story from Personal Finance here
    When last did you check the insured value of your assets?

  2. #2
    Silver Member
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    My story:

    After an involuntarily donation of my old car to RDP, I bought a new car Jan 2007. Premium now increased due to claim (b.t.w. - old car was a jalopy, so it's not as if it cost them a fortune!!!) and new increased car value, I was paying a hefty bit, but accepted that that's the way the cookie crumbles.

    On anniversary of policy I get a nice "Happy Anniversary of your car" letter, all bells & whistles and thank you's and what not. Last sentence, printed so small that I had to invest in a telescope to read it: "Oh & by the way, here's your present - premium increase, excess increase and a couple of other adjustments.

    WELL!!! Started shopping around and got an excellent quote at another (equally sleazy??? Time will tell I suppose) firm and duly cancelled original policy. Immediately got a phone call from some senior consultant "Why are you cancelling?" and after explaining about the sweet birthday surprise new rate and applying my logic that my car is now worth considerably less than a year ago, she sweetly volunteers that they can also re-look at my premium. SO WHY DO I HAVE TO ASK???? EVER HEARD OF CLIENT SATISFACTION & SERVICE???

    I agree with Dave, perform an annual "health check" on your affairs - insurance, bank charges, rates, etc - you'd be surprised how we as consumers are being ripped off simply because it's too much of an effort to put up a fight!!

  3. #3
    Email problem daveob's Avatar
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    Never does any harm to get another quote once in a while.

    Insured with M&F and phoned Outsurance for a quote. They came back with a rate about 20% cheaper.

    Immediately phoned our broker. "Oh Yes, but you have to remember that their quote does not include car rental in the event of theft"

    HELLO !!! I work from home and have 2 cars ( both parked at home all day ). WHY would I need car rental if one of them is stolen ? Are they going to steal both cars on the same day ?

    Bottom line - broker had the policy reviewed and now I am paying 20% less per month.

    Spend the time on the phone and make sure you understand EXACTLY what you're covered for.
    Watching the ships passing by.

  4. Thanks given for this post:

    Graeme (02-Dec-08)

  5. #4
    Join Date
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    South Africa
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    It is the same in any industry......IT PAYS TO SHOP AROUND AND OFTEN
    Even before you get married it pays to wait for a better quote
    I am an authorized Mutual and Federal adviser and as a matter of policy I review client assets every 6 months

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