4 bizarre car insurance myths busted!

   

Jade Poole from I Write Words

    0
blurred-background-car-colorful-1229175- blog

We debunk the strange and false facts about car insurance and tell you the truth to each one

You shouldn’t believe everything you hear, especially when it comes to car insurance. Unless you hear it from us, of course. Because we are in the business of simplifying insurance, we get how it is a field that not a lot of people understand and that’s often why these bizarre myths come about.

It’s also why we make insurance as simple as possible, take out any fancy words or big terms and break it down to the basics. In sticking with our promise of always telling it how it is, we have put together a list of the top 4 strange and weird myths we have heard about car insurance…

Myth #1 - Your personal car insurance also covers your business too!

If you are self-employed and you make use of your car for your business too, then you need to make sure you declare this to us (your insurer) when you apply for your insurance quote. Here’s how our car insurance plans work:

There are 3 types of uses for our car insurance plans:

  1. Private use only
  2. Private and limited professional and business use
  3. Private and professional business and full business use

1. Private use only

If you use the car for household purpose leisure activities; going away on weekends and holidays collect kids from school, weekends and holidays, and including use by pensioners and housewives.

What you can use your car for

●         Social, domestic and pleasure use only.

What you cannot use for your car

●         You may not use the vehicle for any work-related activities - Travelling to and from place of work, business or professional use of any nature

●         Selling products or services.

2. Private and limited professional and business use

If you mostly work in an office and use the car for no more than a third of your total weekly usage to attend external meetings. Including accountants; bookkeepers; attorneys; doctors; actuaries and architects.

What you can use your car for

●         Social, domestic, pleasure and professional use, including travel to and from your home and permanent place of work, study or profession.

●         Vehicle sharing, accepting payment from giving lifts to passengers for social purposes or commuting ONLY IF:

○         The passengers are not being carried in the course of a passenger carrying business;

○         The total payment does not amount to profit.

What you cannot use for your car

●         If you use the vehicle more often for professional and business reasons, you should get cover under the private, professional and full business use.

●         Selling products or services.

3. Private and professional business and full business use

If you who use the car for more than a third of your total weekly usage. Including representatives; other salespeople; surveyors; assessors; private investigators; doctors; architects and accountants.

What you can use your car for

●         Social, domestic, pleasure and professional and full business use, including travel to and from your home and permanent place of work, study or profession.

●         Vehicle sharing, accepting payment from giving lifts to passengers for social purposes or commuting ONLY IF:

○         The passengers are not being carried in the course of a passenger carrying business;

○         The total payment does not amount to profit.

What you cannot use for your car (for all 3 types of uses)

●         Hiring out for reward.

●         Carrying goods for resale, reward or trade, unless we have given our prior consent in writing to include this.

●         Carrying passengers who pay a fare for your profit

●         Courier services.

●         Commercial travelling.

●         Driving instruction for reward.

Myth #2 - The colour of your car will determine your insurance premium

Have you ever heard someone say that if you buy a red car that your insurance premium will be higher? Meaning you pay more for a bright or oddly coloured car?

Well, this does have some truth to it. In actual fact, Arrive Alive states that “Actuaries from car insurers in South Africa believe that the colour of your vehicle does have an effect on your car insurance premium. Statistics show that a darker colour car is more likely to be in an accident due to the fact that it is harder to see. A white or silver car is more visible.”

But your insurance premium is also determined by a number of other factors such as the type of car you drive, your security situation where it is parked, your driving history and some other risk factors listed in your policy document.


Myth #3 - You don’t need comprehensive cover

Experts have stated that of the 12 million registered cars in South Africa, around 70% of these are not insured.

This means that when someone crashes into you who doesn’t have insurance, you will need to prepare yourself for a lengthy and exhausting battle of trying to get them to pay you for the damages.

Most car insurance companies offer 3 different types of insurance and you have to choose one. That isn’t the case with us. If you insure your vehicle with Oneplan then we offer comprehensive insurance at the price you can afford. You determine your premium and how much we cover you for.

And no matter what, you will always have third party liability cover of up to R2.5 million.

Myth# 4 - Only new and fancy cars get stolen

False. All cars have a risk of being stolen. Research states that 29% of people actually believe this myth is true. But the thing is, older cars are easier to steal and resell. They can also be sold for parts.

Luckily, we cover you for theft if you are insured with Oneplan.

Stick with the experts. Stick with the truth.

Yours in uncomplicated car insurance,

Oneplan 


Related posts

Cover your family, and get Oneplan Health Insurance

GET A QUOTE