Car Insurance

W

Wino

Senior Member
Joined
Sep 7, 2005
Messages
943
Reaction score
1
Location
Cape Town
I've just been in an accident where my car was written off. I have fully comprehensive insurance and will be paid out the insured value. So far, no problem. I had a zero excess policy, meaning a higher monthly premium, but no excess at a time of theft or accident, so I have not had to pay anything out yet.
I was crashed into from behind, while stationary in heavy morning traffic, and obviously I am not at fault at all here.

Now I am busy inquiring about premiums for my next car so I can budget accordingly.
I have been told by my existing insurance company that although I am totally innocent in this accident, it will affect my new premium, something to the affect of R385-00 extra per month for roughly the same value vehicle.

I'm told that although the car who crashed into me was totally guilty, his insurance company does not pay for my car, but instead my insurance company does, so they take the loss. Only if I had an excess which I would have had to pay out already, would they have claimed this back from the other guys insurance.
I had no idea car insurance worked like this. I thought the guilty party's insurance was liable for all damages resulting from his negligent driving. (Given a clear cut case)

I'm not sure I believe what I have just been told in this regard.

Anyone else know how this works?
 
That doesn't sound right to me. Yes, you will suffer even though it was not your fault, but I am very very sure they will claim it back from the other insurance company.
 
Since when does an excess waiver on a policy mean that you'll be liable for a premium increase if something happens?

One of my friends had an excess waiver on his policy and crashed. His premium went up.

I didn't have the excess waiver with mine and when I crashed, my premium went up.

To conclude, I'm sure if you claim, your premiums go up - no matter what happens.
 
Brother crashed a car under my father's insurance - father insured driver of the car. Repairs cost 87k and was not claimed back as he hit a pedestrian (not brother's fault). Monthly premium went up on just that car and the other 11 on that policy stayed at the same premium
 
Well the first part is the insurance will pay.... you have paid them to be insured.. the car was written off.. no disputes.. so they will pay you.
The second part is that they will then try claim from the others guys insurance/ other guy.. depending on if it is worth their time and money, may happen so end of day the insurance company may come off square.
They will always slap this penalty on you anyway so that you pay more.. just because people will pay more.
 
Wino said:
I am using a broker.
Click to expand...

Then find a better one because he should be communicating with the insurance company and not you. Your broker should be the one making sure your premium does not go up.

While we have not claimed for our cars, our business put in a couple of big claims and not once has this affected our premium thanks to our broker.
 
cbrunsdonza said:
Then find a better one because he should be communicating with the insurance company and not you. Your broker should be the one making sure your premium does not go up.

While we have not claimed for our cars, our business put in a couple of big claims and not once has this affected our premium thanks to our broker.
Click to expand...

Obviously I will be changing brokers. I just found it strange that the consultant was so adamant, in an apparently recorded conversation, that all insurance companies only claim back from the 3rd party insurance the excess. In other words she was purely trying to justify the ridiculous increase in premiums regardless of all evidence proving I was 100% innocent and trying to insinuate that they were taking a financial knock.
 
Wino said:
Obviously I will be changing brokers. I just found it strange that the consultant was so adamant, in an apparently recorded conversation, that all insurance companies only claim back from the 3rd party insurance the excess. In other words she was purely trying to justify the ridiculous increase in premiums regardless of all evidence proving I was 100% innocent and trying to insinuate that they were taking a financial knock.
Click to expand...

I do believe they recover the full amount from the person at fault. I'm not an expert, but I always thought that this is how it worked.
 
It seems your risk profile now increased therefor the increased premium. If you lodge a claim, your risk profile is affected regardless of what really happened. Fight it to the teeth dude, it is just not cricket.
 
AlphaBravo said:
It seems your risk profile now increased therefor the increased premium. If you lodge a claim, your risk profile is affected regardless of what really happened. Fight it to the teeth dude, it is just not cricket.
Click to expand...

Absolutely!
They can even see from the installed Sat Tracker in my car how I have been driving for the last year, and the fact that I was stationary at the time of the accident.
Their greediness for a few extra hundred each month will now lose them the entire premium.
 
Wino said:
Obviously I will be changing brokers. I just found it strange that the consultant was so adamant, in an apparently recorded conversation, that all insurance companies only claim back from the 3rd party insurance the excess. In other words she was purely trying to justify the ridiculous increase in premiums regardless of all evidence proving I was 100% innocent and trying to insinuate that they were taking a financial knock.
Click to expand...

I understand and agree with your concern. This somehow sounds wrong it looks like they are trying to shaft you without even the courtesy of lube.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X