Your three biggest motor insurance questions answered
Some of us know everything there is to know about motor insurance, whereas others of us would find a motor insurance claim more daunting than an actual accident or theft itself!
Here are some of the biggest motor insurance questions (and answers) that we encounter in our dealings with our clients.
1. What is Comprehensive Insurance?
With Comprehensive Insurance, you will be covered against loss or damage, including theft, hijacking, accidents, flood, hail and even intentional damage caused by someone else.
You will also be covered for damages to a third party’s vehicle if an accident is your fault.
2. What is Retail Value?
At Leigh Insurance, we will insure your vehicle at the current Retail Value. This is the value your car would sell for at a dealership; this value is also closest in value to the vehicle’s replacement value.
The retail value depreciates month to month, based on mileage travelled and the condition of the vehicle.
3. What is First Amount Payable/Excess
The First amount payable or excess is the amount you, as the policyholder, agrees to pay before the insurance company settles a claim.
The First amount payable or excess can be percentage-based with a minimum amount payable, whichever is higher.
Alternatively, some insurers offer a flat excess/amount payable for each claim, irrespective of the damages or loss.
Example: Percentage Excess: 5% of claim, minimum R3 000
Motor vehicle accident on a 2010 Ford Ranger, if damages amount to R75,000 the excess would be R3,750 = 5% of claim damages (R75,000); therefore, the minimum of R3,000 wouldn’t apply as the percentage is the higher value.
Example: Flat Excess: R5 000
Motor vehicle accident on a 2021 Ford Ranger, damages amount to R75 000, the excess would be R5,000 = flat amount payable for each claim.
At Leigh Insurance, we place a high value on providing an insurance product and service that is efficient and tailor-made to your unique requirements. Ensure that you are more easily able to navigate life’s challenges by having the correct insurance cover. Call on Leigh Insurance today!