Reducing insurance

CathJ

CathJ

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I just got my re-rate notification from Outsurance, and my car insurance has increased by R100! Yes, I did make a claim this year,but still...

My car is 3 years old now, so I figure it's depreciated a bit. It's insured at 'retail' value, but I'm not sure what that means or what they'd actually pay out if it was totalled or stolen, and I don't want to be over-insured. I tried asking Outsurance whether or not it was insured for the right amount, but they seemed clueless- to be fair, that was most likely because I'm clueless! What, exactly, should I be asking them to do?
 
I am in same boat with auto and gen. I think once they have you, your rate is not going to go down easily. I am going to shop around for new insurance and when I find lower rate, go back to my current one and ask to cancel it. They will ask why and might offer lower premium once they know I am changing.
 
They do offer lower rates! I gt a nice fat discount!!! Tell them another co offered a better deal!
 
Posting under correction:
I think you can be insured for retail or trade-in value. I think it's good that you insured for "retail." 1. You could ask them how much they'd paid out tomorrow if your car is stolen, etc. 2. Call your financing house to check the settlement? Wesbank allows you to check this online.

I was fortunate to get my premium lowered this year. I pointed out obvious things like depreciation, etc. I think they hear that all the time. The call center agent resisted. I POLITELY asked to speak to the team leader. I mentioned that everything I own is insured with them: house, car, household contents. I think she realised how much they stood to lose if I walked... I must mention: luck & being very nice (esp. if opposite gender) helped somewhat. All the best!!!
 
CathJ said:
I just got my re-rate notification from Outsurance, and my car insurance has increased by R100! Yes, I did make a claim this year,but still...

My car is 3 years old now, so I figure it's depreciated a bit. It's insured at 'retail' value, but I'm not sure what that means or what they'd actually pay out if it was totalled or stolen, and I don't want to be over-insured. I tried asking Outsurance whether or not it was insured for the right amount, but they seemed clueless- to be fair, that was most likely because I'm clueless! What, exactly, should I be asking them to do?
Click to expand...

The car insurance environment....very murky waters. Tread lightly. But I got a lot of knowledge after I got hijacked a few years ago & I will share it with you for free. :)

1. Your car is insured at retail value. That just doesn't sound right. Now how would Outsurance know for how much your 3 year old model would sell? And what would they sell it for? Most probably peanuts, to pay out a smaller claim. My car is insured with Santam at book value, they can't crook me with any claims & that's also how I know I'm not paying too much or under insured. My car financing is through Wesbank & I just phone them to ask what is my car's current book value.

2. Here is the REAL questions you should be asking your insurer (some of this are like something out of a horror movie, but just hang in there!)

a. What percentage do they penalize your claim with when you get hijacked & what is the excess percentage, should you claim for an accident? Santam immediately deducts 10% of your overall claim if you get hijacked, so if your claim if for R200000, they'll only pay out R180000. Till this day they are unable to tell me why....but all of the insurers do it like that. I told them that it's a traumatic experience to go through, they just said that's how it's done. Same if you're in an accident, your car is a write-off & you want your money. The excess might be 5% and that means you'll have to cough up R10000 before they'll pay out your claim for R200000. Not nice. And some people actually have to go get a loan just to pay the excess. And nobody tells you this. :(

*What you need to do here, is have excess "topup". Doesn't cost that much extra a month, think mine is R35, but it covers the excess amount, or the 10% when you get hijacked.

3. Make very sure you take out the rental car option, for when your car must go in for repairs, or you get hijacked. It only costs like R40 a month extra & is a lifesaver. I didn't have it when I got hijacked and had to rent a car for R250 a day. Not nice. And what the insurance companies will also not tell you, is that if you get hijacked, they first wait for 2 weeks to see if the police can't find the car. Only then do they start processing your claim and the biggest hold-up is the police reports....well actually more to just get hold of the police. Can you be without a car for a month? If not, get the rental car option.

Well, that's it for now, will post more stuff as I remember it.
 
Last edited by a moderator:
@kingrob: Have you tried asking for you car to be insured at trade value? Is that possible?

I honestly don't get how a cars insurance premiums can increase when the cars value depreciates. They will probably claim the car is a higher risk or some such nonsense.

Insurance companies are about as low as it goes. Honestly I can see hell being run a insurance company, insuring you have a "hell" of a time.
 
First get some quotes from Hippo, then phone Outsurance and ask to be put through to the Retention Department.
Inform them that you are moving if something is not done about your premiums, and they will more than likely drop them. I have just got a massive reduction that way, as they don't like to lose customers over price.
 
Fazda said:
First get some quotes from Hippo, then phone Outsurance and ask to be put through to the Retention Department.Inform them that you are moving if something is not done about your premiums, and they will more than likely drop them. I have just got a massive reduction that way, as they don't like to lose customers over price.
Click to expand...

What he said. Their normal customer service won't help you at all to lower your premiums but the retentions department can. Apparently (so they told me when I cancelled my policy with them) you should phone the retentions department every 12 months or so to have your premiums re-evaluated. Nobody that I know that's with Outsurance knew that either....
 
I'm insured with budget and my premium is R922 a month, it's insured for a Ford Figo. I don't know why my insurance premium is so high :(, do people lie about a few things when they apply for insurance so as to have a lower premium? With budget, if my car is stolen or hijacked, I'll have to pay an access of 7.5% of the value of the car, in my case R12500. I did a quote with Miway recently and their access is R3000, it doesn't matter if the car is a writeoff or stolen. I'm switching to Miway at the end of the month.

Another thing I wanted to do is to cancel my insurance. I'm finaced by Absa and according to budget insurance, Absa is a very difficult client meaning budget require proof of insurance before I cancel with them since Absa wants proof that I have insurance all the time. I wanted to cancel my car insurance because I felt like I'm not high risk. Please don't lecture me about how dangerous this country is and stuff :). I also don't like the fact that I'll be paying R922 every month for 5 years without putting a claim, unless ofcourse I crash my car, claim from my insurance and then get a new car :).
 
They don’t look at you as person Sly but rather in the age you fall in and where you live and where the car is during the day then they do a comparison to see how many claims falls in that category and then they give you a price.

Its got nothing to do with you even if you are a hermit at home and don’t leave the coach your class falls in a high risk thus you are a high risk and you pay for that.

i.e You are 21 and have a Skyline GTR you are more likely to cause an accident than a 40sh guy with the same car.
That’s just reality
 
R13... said:
How will cancel manage to cancel insurance on a financed car?
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Canceling insurance on a financed car is stoopid, and I would also say it is illegal.

I am 21, drive a new Hyundai i20 1.6 and pay R850 pm premium which includes content insurance for my flat and car rental if I have an accident etc. My broker FTW.

Outsurance is a joke.
 
If you phone them and ask them to re evaluate, they should lower your premium. (Which is something I need to do soon)

As for the guy who wants to cancel his insurance, that would be fine if there are no other drivers on the road, so maybe just consider 3rd party insurance, so if you bash into me some day, I can still get your insurance to pay for the damages.
 
You MAY NOT cancel comprehensive on a financed car.
Before moving to Miway, try Outsurance who will fix your excess at R2500/month as well as give you a decent premium.
Refer to my post above about speaking to the Retention Department.
 
Fazda said:
You MAY NOT cancel comprehensive on a financed car.
Before moving to Miway, try Outsurance who will fix your excess at R2500/month as well as give you a decent premium.
Refer to my post above about speaking to the Retention Department.
Click to expand...

That is what I thought ;)

What is your thoughts on brokers Fazda?
 
I pay R767pm with Dial Direct for my 2005 350z. R3500 excess. I spent a few days looking for quotes. Budget was slighty cheaper per month but with a much higher excess. I'm 27 and have been driving claim free for over 9 years so some insurers took that into account when deciding the premium. ABSA and Outsurance gave me quotes of over R1500pm!
 
kingrob said:
a. What percentage do they penalize your claim with when you get hijacked & what is the excess percentage, should you claim for an accident? Santam immediately deducts 10% of your overall claim if you get hijacked, so if your claim if for R200000, they'll only pay out R180000. Till this day they are unable to tell me why....but all of the insurers do it like that. I told them that it's a traumatic experience to go through, they just said that's how it's done. Same if you're in an accident, your car is a write-off & you want your money. The excess might be 5% and that means you'll have to cough up R10000 before they'll pay out your claim for R200000. Not nice. And some people actually have to go get a loan just to pay the excess. And nobody tells you this. :(

*What you need to do here, is have excess "topup". Doesn't cost that much extra a month, think mine is R35, but it covers the excess amount, or the 10% when you get hijacked.
Click to expand...

Santam has a no excess option, costs extra, but just ask for it.
Good post btw, thanks for sharing.
 
Please contact me regarding the matter? I am an employee of OUTsurance, and will ensure that we assist you? thanks, Dinky: Tel: 012 - 673 3328.
 
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