Is vehicle insurance another racket?In general the value of a vehicle decreases by about R1000 or more per month.However,when you commence your insurance, your retail value is given by the Insurance Company, on which you pay your premium and you are covered for the next 12 months.This is false, because you are paying a premium on an item which decreases monthly.It follows that should your car be a write off,say 10 months into the cover period, you could be down by about R10 000 or more .I wonder whether this method is in line with the Consumer Protection Act.I would like to hear from members how they address this matter.
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Vehicle insurance
- Thread starter archibald
- Start date
satanboy
Psychonaut seven
BS
and what is with the shouting?
and what is with the shouting?
Pitbull
Verboten
You are talking about a lot of "what if's". That is what insurance is for... the "What if's". If you take insurance today and write if off tomorrow they pay you out the retails value of the car even though you only paid 1 premium. If you don't write off the car they collect till you either cancel or change your car.
You are not paying in relation to the value of the car, you are paying absed on your risk profile. A guy with a R 2 Mil car could end up paying less per month than you pay for your R 100k vehicle per month. If you are more likely to write off your car you pay more. That is how it works.