While insurance is an essential aspect of recovering financially from
vehicle theft, there are still unexpected costs you may not have planned for,
and some which you cannot attach a monetary value to. “The best advice is to mitigate
your risk as far as possible with correctly scoped insurance and advice,
deploying security measures to deter would-be criminals, strictly adhere to
road safety rules and to drive defensively,” says Mandy Barrett, of insurance
brokerage and risk advisors, Aon South Africa
Here are a few unexpected costs to consider as well as
safety measures that could help you to mitigate the risk of car theft:
deductible or excess - an insurance claim is subject
to a basic excess, usually 5% of the loss, which is something to take into
account. If you are over the age of 55 years, you don’t pay a basic excess on
Aon designed personal products.
2. Your monthly motor
insurance premium is likely to increase following a claim due
to the loss of your ‘no claim bonus’.
3. You can mitigate
against theft by parking in a safe area and locking your vehicle at
night. Most insurers will offer a premium discount should you volunteer to
install an approved tracking system where the policy condition does not require
4. Check that you have
included the maximum car hire on your policy to avoid the cost
and inconvenience of being without transport while your insurer is sorting out
your vehicle following an incident.
5. Avoid leaving
valuables in your vehicle - if unavoidable, make sure it
is out of sight. Items that you bring along in your vehicle, such as your
laptop, smartphones and luggage to mention a few, must normally be specified
under your All risks cover, or these items won’t be covered.
6. Car remote jamming remains a
trend and there is generally no cover if there is no evidence of a break-in to
your vehicle - it is important to check that your car is locked before walking
the Basis of Loss Settlement on your insurance - Retail value is
the price at which the dealer will sell a vehicle to you. Market value is what
you could expect if you trade the vehicle in. Insurers will usually
stipulate on which basis the claim will be calculated.
8. Credit shortfall
cover should be taken where the outstanding balance exceeds the retail
value of the vehicle, enabling you to settle outstanding debt if your car is
stolen or written off.
9. Drive Defensively by being
aware of road and weather conditions, other road users and hazardous situations
and take steps to avoid becoming a statistic.
10. It is the
responsibility of the driver to take due care by abiding to
the rules of the road and keeping your vehicle in a roadworthy
Your ultimate goal is to mitigate your risk as far as possible and have
appropriate insurance in place for those mishaps that cannot be avoided,
putting you back in the same position – financially - as you were before the
This is where the value of having an expert broker by your side comes
to the fore. Your broker will guide you through understanding the policy
wording and will also point out any gaps in your insurance cover that could
leave you compromised – something many people only discover at claims stage
when it’s too late and they’re out of pocket.
Should you require any advice on your current car insurance policy, or
perhaps want a second opinion for peace of mind, then please reach out to us on
our website www.esbrokers.co.za
by Mandy Barrett of Aon South Africa
Featured in FANews