How to cancel car insurance if vehicle is financed by Absa?

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Sly21C

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So my (ugly :D) Ford Figo, which I bought brand new last September, is financed by Absa Bank. I pay R990 a month to MiWay insurance, which is a lot of money. I'm 27 and drive 1900kms a month on average. I don't go out partying, only to movies so I won't drink and chances of being in an accident are slim. I live in Centurion in a very secure complex. I don't understand why my insurance is so expensive. I was with budget insurance and paid R950 a month with R15k acces if my car is stolen, that's why I cancelled with them. My access with MiWay is R3k for every type of claim.

So I was thinking of cancelling my insurance, I tried but failed. The insurance company told me they want to know the insurance I will be with before cancelling my insurance with them. They said it's Absa with their strict way of having all the vehicles they finance insured. Surely there must be a way of cancelling my car insurance? Isn't there?

For those of you preparing to lecture me about the dangers of not having car insurance, don't tell be because I know all the risks involved :).
 
I don't think they have a right not to cancel your insurance...

BUT...check your contract with ABSA.. it'll probably say you have to have insurance... Try Indwe...R990 is ridiculous... I pay less than that on two cars.
 
Sly21C said:
For those of you preparing to lecture me about the dangers of not having car insurance, don't tell be because I know all the risks involved :).
Click to expand...

This sentence alone shows me you don't understand the risks involved.
 
Sly - you are breaking the agreement made between you and ABSA by cancelling the insurance. It is THEIR car until it is paid for and they will insist that you keep it insured or give it back to them.

No discussion.
 
I presume it is the same as with your homeloan. The bank requires surety that its investment is looked after. So you will have to find a new insurer, and arrange that they start covering you from date X and list Absa's interests ahead of your own. Then you tell your current insurer to cancel on date X - 1, and you're set.
 
The insurance is so important to the bank that they pay it if you miss it somehow. They do collect afterward of course, but they don't risk it unlike you. Sell the car if you can't afford it.
 
You obviously don't understand the risks :p

Call a broker, get more affordable cover
 
As far as I know insurance on a financed car is COMPULSORY. Which is a little bit obvious in my opinion.

Can you even imagine what would happen if you wrote off the car with no insurance?
 
KalMaverick said:
Can you even imagine what would happen if you wrote off the car with no insurance?
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You continue paying it until it is paid off, and drive a bicycle? The pain that ABSA has is "what if you can't pay the monthly instalments AND the car was written off?" Then there's no way for them to recover their investment. But yes, the rest of forumites are right: get new insurance, tell them you want to commence it on the 1st of August, then inform MiWay that you are cancelling your policy with them on the 1st of August.

I would check that you are covered exactly the same way (or better) - this could possibly be something that ABSA requires as well.
 
ebendl said:
You continue paying it until it is paid off, and drive a bicycle? The pain that ABSA has is "what if you can't pay the monthly instalments AND the car was written off?" Then there's no way for them to recover their investment. But yes, the rest of forumites are right: get new insurance, tell them you want to commence it on the 1st of August, then inform MiWay that you are cancelling your policy with them on the 1st of August.

I would check that you are covered exactly the same way (or better) - this could possibly be something that ABSA requires as well.
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Exactly you continue to pay monthly for something you don't have. That is plain silly.

By the sounds of it the OP wants to cancel his insurance entirely because it's too expensive, not just change it as he has already done that before.
 
Sly21C said:
So my (ugly :D) Ford Figo, which I bought brand new last September, is financed by Absa Bank. I pay R990 a month to MiWay insurance, which is a lot of money. I'm 27 and drive 1900kms a month on average. I don't go out partying, only to movies so I won't drink and chances of being in an accident are slim. I live in Centurion in a very secure complex. I don't understand why my insurance is so expensive. I was with budget insurance and paid R950 a month with R15k acces if my car is stolen, that's why I cancelled with them. My access with MiWay is R3k for every type of claim.

So I was thinking of cancelling my insurance, I tried but failed. The insurance company told me they want to know the insurance I will be with before cancelling my insurance with them. They said it's Absa with their strict way of having all the vehicles they finance insured. Surely there must be a way of cancelling my car insurance? Isn't there?

For those of you preparing to lecture me about the dangers of not having car insurance, don't tell be because I know all the risks involved :).
Click to expand...


Hi, u didn't mention if u have shopped around for quotes.
That's a high amount to be paying for insurance
 
Insurance is mandatory but MiWay cannot prevent you from cancelling. But should you go ahead with this plan then your in breach of contract and ABSA can call back its loan to you. You will end up loosing your car and still having to pay in.

Only option is to shop around and speak to a broker - we did that a few months ago and cut our care insurance from R380 to R200 for better cover.
 
R13... said:
The insurance is so important to the bank that they pay it if you miss it somehow. They do collect afterward of course, but they don't risk it unlike you. Sell the car if you can't afford it.
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can he sell the car? It is owned by the bank until it is settled?
 
L86 said:
can he sell the car? It is owned by the bank until it is settled?
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he can sell the car if he settles the bank, it wont rightfully be his until he settles the bank to get the original paper work/title deed thingy

how do you think people trade in cars they still owe money on
 
Give Santam a call. They seem to have very aggressive pricing at the moment.
They're certainly not the best when it comes to excess and waivers but they were R400 to R600 cheaper than MiWay, Outsurance, Virgin Insurance and Glendrand MIB.

I'm now paying R502 p/m month for a Kia Cerato 2.0 with only the vehicle insured on it's own.
I was paying R926 at Outsurance.
MiWay, Glenrand, Virgin were all over R1000/pm
I can afford Santam's extra excess considering that I'm now saving nearly R5000 per annum.
 
Don't cancel dude. You will regret it if the car is stolen or highjacked and you have to repay a car that you do not have anymore. Rather phone around and get a better premium, because that seems very high for a Figo. Good luck
 
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that seems high.

Have you been in any accidents in the last few years? I'm assuming that would possibly be from when you got your lisence til now..
 
Tip: Contact your insurance company on a regular basis to ensure that your car is still insured for the current value thereof. If you dont, you end up paying unnecessary insurance. In the case of a claim they will only look at the current value and not the insured value.
 
Paul_S said:
Give Santam a call. They seem to have very aggressive pricing at the moment.
They're certainly not the best when it comes to excess and waivers but they were R400 to R600 cheaper than MiWay, Outsurance, Virgin Insurance and Glendrand MIB.

I'm now paying R502 p/m month for a Kia Cerato 2.0 with only the vehicle insured on it's own.
I was paying R926 at Outsurance.
MiWay, Glenrand, Virgin were all over R1000/pm
I can afford Santam's extra excess considering that I'm now saving nearly R5000 per annum.
Click to expand...

Never even thought of Santam, I'll give them a call, thanks.

Venomous said:
that seems high.

Have you been in any accidents in the last few years? I'm assuming that would possibly be from when you got your lisence til now..
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It's too high. I got my drivers license in 2005, this Figo is my very first car which I bought late last year. Never been in an accident, ever! I'll phone around, I should at least be paying R700 or so.
 
Sly21C said:
Never even thought of Santam, I'll give them a call, thanks.



It's too high. I got my drivers license in 2005, this Figo is my very first car which I bought late last year. Never been in an accident, ever! I'll phone around, I should at least be paying R700 or so.
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Ah, so you're a ''new'' driver.

You've got a clean record & have your DL for 5yrs+ so you should qualify for better.

You need to keep in mind that males under 25 get nailed...
 
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