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Car Insurance

By Andrew Stent | Durban | November 15, 2016

Q; Why does my car insurance premium go up every year when the value decreases?

A; The cost to repair vehicles and replace parts increases every year, and your insurance premium increases as a result. Most of your vehicle claims that you will have in your lifetime will be repairs, and the cost of repairing a vehicle is not impacted by the value of the vehicle or the year model.

Q; If I am selling my car, will it be covered if I give it to a dealer or somebody else to sell for me?

A; No, if your vehicle has been entrusted to somebody else as part of a sale process, you will not be covered if the vehicle is stolen. It is your responsibility to protect yourself against losses that occur under false pretences by taking due care with your belongings.

Q; I have heard that insurance companies can reject an accident claim if you have been using your cell phone while driving, is this true?

A; Yes, this is true although different insurers apply the rules differently and some of the leading insurance companies are not yet rejecting claims for texting / talking whilst driving. This is likely to change very shortly though and our advice to our clients is to not use their phones while driving, unless you have a hands free car kit. Insurance companies will reject your claim for having an un-roadworthy vehicle, driving drunk or driving negligently so always read your policy wording to find out the conditions of your cover.