Car Insurance - Code 3 vehicle

[j5646w]

Here's a question, say you are driving and hit someones vehicle from behind. Okay it's your fault and your responsible for the repairs to the other vehicle which is not insured.

When the insurance company checks they find out that the other vehicle is a code 3 vehicle (a rebuild vehicle) does the insurance cover this vehicle?

 

[ToxicBunny]

No more than likely not unless it has a valid roadworthy cert

 

[j5646w]

The vehicle was rebuilt, with a valid roadworthy and licensed. Legally the vehicle may be on the road. My insurance refused to payout.

 

[Rocket-Boy]

They should payout for repairs, if its written off then the value would be much lower than market value.

 

[j5646w]

This is bad, other words before you accidentally get involved in an accident you first need to find out what code vehicle you are going to hit or your insurance might not pay out and you will have to pay out of your own pocket. What does insurance help then.

 

[creeper]

The vehicle was rebuilt, with a valid roadworthy and licensed. Legally the vehicle may be on the road. My insurance refused to payout.

If the vehicle is legally on the road and you have 3rd party or comprehensive, there is no excuse for the insurance not to pay. However. If there is any evidence that the vehicle is not roadworthy, insurance can decline.

 

[j5646w]

Thanks for the answers - Is there a standard for insurance companies that they have to abide to?

 

[creeper]

It is called the insurance ombudsman.

 

[Jet-Fighter7700]

Also another question if your car is totalled, and later find brakes are worn or tires bald, can they refuse to pay out?

 

[Hemi300c]

Also another question if your car is totalled, and later find brakes are worn or tires bald, can they refuse to pay out?

Only if it has a direct bearing on the cause of the accident.

Code 3 vehicles are usually insured for 70% of market value but premium based on market value of a normal vehicle.
Reason being replacement parts are std but total loss settlement 70%.
Having said that it is no longer easy to get insurance on code 3 vehicles.

Your insurer will base the TP claim on the aforementioned.

 

[creeper]

^^This

 

[web]

Thanks for the answers - Is there a standard for insurance companies that they have to abide to?

Yes it is called the short term insurance act, had a copy when i had issues with an insurance, your best bet is draft a short letter to the insurance ombudsman asking for advice. He is really helpful and helped me out in my pickle.

http://www.acts.co.za/short-term-insurance-act-1998/index.html?act.php

There are other websites were you can download it from, also try phoning an insurance broker that someone you know uses and ask their advice, and THEN GET YOURSELF A BROKER for future issues

 

[reactor_sa]

Also another question if your car is totalled, and later find brakes are worn or tires bald, can they refuse to pay out?

I believe they can refuse to pay if the vehicle was not roadworthy at the time of the accident.