Insurance : double debit on first premium

C

cptpolo

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Hi there guys!

Me again, needing your advise yet again. So finance is approved and bank now requires that I find insurance. Shopped around a bit and finally decided to settle on Hollard Insurance via Standard Bank Insurance Brokers.

They have now sent me the policy wording and certificate of insurance. It is as follows :

Inception date : 02 August 2010
Premium : R1050, 32
Adjustment Premium : R1060.00
Total Premium : R2110.32 Due by you

:wtf:
The total premium is basically double the premium that we had agreed upon!!! New at this, so am not sure how it is done so I would like to know the following :

  1. Is it standard for insurance companies to double debit you on first payment?
  2. Do I have this wrong and this will be done over two debits? One before I take delivery of the car and 2nd one when they debit the normal premium going forward

I am pretty sure that the lady told me that the first premium will be taken in 48 hours and will be the adjustment premium whereafter the 2nd premium will be taken on the first of the following month. But when I saw this policy wording, I started to freak out - so perhaps you guys can clarify a few things for me?

Thanks!
 
i can't think of any reason why they would need 2 months worth of payments upfront.
 
This is standard practice across the short-term insurance industry; and milomak, it's not 2 months worth of payments upfront. In order for the op's car to be covered, he would need to make an initial payment for this month; the 2nd premium would then be deducted on the first of the following month.

cptpolo, call your insurer if you're confused about the wording of your policy; they are supposed to explain it to you.
 
I think its THIS month's premium...they normally deduct it with the month to follow isn't it that 1 month in advance thingy?
 
Beware of a couple of things:
1) They should have deducted this months prem
2) Some policies are still annual policies payed monthly which means that if in mth 3 you write your car off the take the 9mths prem off your settlement.
3) Your broker STD Bank earns commission and it is their duty to discuss and clarify EVERYTHING to you and they are governed and monitored by the FAIS Ombudsman - if you not happy with any service contact him.
4) You should be advised and enlightened in all aspects ie: Premium, excess, covers, restrictions etc (did they not go through this with you?

I get pi22ed off when insurance gets put in a bad ligh due to plonkers in the industry.............
 
Hemi300c said:
Beware of a couple of things:
1) They should have deducted this months prem
2) Some policies are still annual policies payed monthly which means that if in mth 3 you write your car off the take the 9mths prem off your settlement.
3) Your broker STD Bank earns commission and it is their duty to discuss and clarify EVERYTHING to you and they are governed and monitored by the FAIS Ombudsman - if you not happy with any service contact him.
4) You should be advised and enlightened in all aspects ie: Premium, excess, covers, restrictions etc (did they not go through this with you?

I get pi22ed off when insurance gets put in a bad ligh due to plonkers in the industry.............
Click to expand...

Yes, I emailed and called in to request clarity.

Seems they made a mistake when they added those two together...they only took the adjustment premium with the rest to be taken on the first of the following month going forward. Seems the girl that I was dealing with didn't have a clue of what she was doing because she also kept on misspelling my address. Called in 3 times and it was still wrong - was only fixed once I emailed in wrote it out for them.
 
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