Vehicle Insurance : percentage of claim excess

[Dolby]

Hi.

I'm currently changing my vehicle insurance from Hollard Pay As You Driver (on average, R1300.00pm) to Zurich (R600.00pm).

Hollard is R2500.00 excess and Zurich is 5% of claim value. Hollard keeps pointing out that a percentage of claim is a really bad way to do things and say I'm making a mistake.

The way I see it my car is valued at R145,000.00 so at worst, my excess will be R14,500? I'll be saving over R8,000.00 over the year swapping.

Am I doing the right thing?

 

[Gaz{M}]

Well another way to look at it is the R2500 excess is 5% of R50 000. So any damage less than that and you score with Zurich, never mind the monthly saving.

Your math is wrong: 5% of 145k is R7250.

The only thing i can say is that you then need to make sure you have R7250 tucked away to pay in the event of needing it.

 

[cipha]

Zurich is 5% of claim minimum R2000

and if you are under 25 there is a further 5% minimum R500

so with my most recent claim, my excess was R3000 for a claim of +-R22 000

 

[Dolby]

Well another way to look at it is the R2500 excess is 5% of R50 000. So any damage less than that and you score with Zurich, never mind the monthly saving.

Your math is wrong: 5% of 145k is R7250.

The only thing i can say is that you then need to make sure you have R7250 tucked away to pay in the event of needing it.

oh - oops!

Sorry about the maths