Getting To Know Your Car Insurance Policy: Things That Every Policyholder Should Know
Learn the legal lingo in this expert guide as we dive into the terms and conditions of your car insurance policy and highlight exactly what you need to know as a policyholder.
Before you sign on the dotted line of any legal contract (namely your vehicle insurance policy), you need to make sure you know exactly what you are signing up for.
We get that you lead a busy life and double-checking a boring insurance contract is not exactly on your list of top things to do today. We can list a handful of things you would rather be doing than reading a legal contract.
But here’s the thing…
What happens when you assume you are covered for something and when it comes time to claim, you find out that you are not. Which means you are then left in a situation where you have to pay for damage costs out of your own pocket all because you didn’t read the fine print. Doesn’t sound like fun, does it?
We want you to know exactly what you are covered for, which is why we have put together this simple and easy-to-use guide on getting to know your car insurance policy with any insurer.
Heads up - remember that no insurer is alike. Because of this, you cannot be under the impression that just because one insurer includes cover for a certain event, this does not mean that other insurers include this cover too.
What are the exclusions in your policy? (what are you not covered for?)
What kind of risks does your policy exclude?
Collisions and theft
When you insure your car, you might forget about the number of things that can go wrong. Collisions and theft are two of the most common events that you need to ensure you are covered for.
For example, third party cover only will not pay for collision damages to your own car, nor will it cover theft. (Read: why third party is not enough)
Then there are other situations and events that you need to find out whether or not you are covered for them. For example, what happens when you find yourself in a hail storm, one that significantly damages your car - are you covered for these damage costs?
Make sure you are covered for risk such as:
- Collisions or accidents
- Attempted hijacking, attempted theft
- Hijacking, theft
- Fire damage or explosion
- Damage to the windows of your car
- Weather: hail, rain, flooding or snow
Make sure you pay close attention to the list of exclusions outlined in your policy document.
What is your excess on a claim?
An excess is an amount you have to pay in the event of a claim. Your excess will either be paid to the service provider (such as the panel beater) or it is deducted from your final settlement total.
You need to make sure that you know exactly what your excess amount is.
Cover you can adjust with Oneplan
At Oneplan, we let you tailor your cover according to the amount of coverage you want and what your budget can afford. We do this using our sliding scale.
Basically, you select a percentage of cover you want for your car, and we calculate your premium and your excess amount based on this.
For example - If you have chosen 50% cover for your car, then we cover you for 50% of the retail value of your car in the event of a write-off. Or we cover 50% of damages in the event of an accident resulting in repairs. You get the point.
We will deduct the excess before we pay your claim.
What value is your car insured for?
When you sign up for a car insurance policy, you need to keep in mind that there are 3 different values an insurer can insure your car for:
- Trade value
What value does Oneplan insure my car for?
The amount your car is insured for is based on the retail value of your car and the percentage cover you have decided on.
The retail value of a car is the value or price that a car dealer would sell it for, including the factory-fitted accessories.
Other things to keep in mind
You also need to know how to claim for something and how helpful you insurer’s customer service is.
The last thing you want is to be stuck with an insurer who has terrible customer service.
This is why we have an in-app chat function for you to chat with one of our team members through the Oneplan App.
While you’re here, have a look at this blog on 4 things that can affect the price you pay for vehicle insurance.
Yours in uncomplicated insurance,