True or false - if you have a bottle opener on the keyring of your car and you get into an accident, your insurance will not pay out.
Wynand van Vuuren, client experience partner at insurer King Price said that the answer to that question is false.
According to van Vuuren, only if you have been drinking and you are over the blood alcohol limit then you could have a problem but your insurance claims are not affected by how you decorate your car keys.
“There are a lot of weird myths and perceptions out there about insurance, and they often put people off from taking out insurance in the first place,” van Vuuren said.
Van Vuuren offers clarity on five insurance myths.
Myth: If your airbags deploy, your car will be written-off
Fact: Your airbags don’t determine whether your car can be repaired or not.
The decision of whether your car is a write-off or not is made based purely on whether it’s economically viable to repair the car.
Van Vuuren said: “When assessing a claim, a range of factors is taken into consideration, including the availability of parts, your car’s age and condition, and its retail value. But deployed airbags alone don’t mean an automatic write-off.”
Myth: If your financed car is stolen or written-off then you don’t have to pay back what’s still owing on it
Fact: Whether you still have the car or not, you are still responsible to the financer for the full financed amount, plus the applicable interest and any extra charges.
“This is why it’s compulsory to have comprehensive insurance when you finance a car,” van Vuuren said.
Myth: Having credit shortfall means you can buy a new car if yours is stolen or written-off
Fact: Credit shortfall cover pays what you still owe the financer after your insurer has settled your claim.
Van Vuuren said that credit shortfall cover takes care of the difference between the settlement amount at the time of your car being written-off or stolen, and what you still owe the financial institution for it.
Credit shortfall is not automatically included in your policy. People need to ask their insurer to add credit shortfall cover, and an additional premium is payable for it. There are some terms and conditions that do apply but the cover is important.
Myth: If I don't drive that much, I don't need insurance
Fact: If someone jumps the stop sign and hits your car, will you be able to cover the financial loss? If not, you need insurance and people need to remember that insurance does not just offer you protection while you are on the road.
Your car is still vulnerable to fire, theft, and weather-related risks while on your own property. Plus, having insurance means you are covered for your liability towards other people’s cars and property as a result of an accident. Making sure that your car is insured will ensure you always have peace of mind.
Myth: Anybody can drive my car at any time
Fact: When doing a quote, your insurance provider will always ask who the regular driver of a car is, or in other words who drives the car most often in any monthly period.
“When you tell your insurer you’re the regular driver, they base your premium on your specific risk profile. So, if you tell your insurer that you’re the regular driver but your student child drives the car most of the time, you’ve effectively supplied your insurer with incorrect information, and this could lead to a claim being rejected,” van Vuuren said.
People need to make sure that their policy always reflects their correct and complete information so that there’s no confusion or unnecessary delay if they need put in a claim. Don’t listen to the myths, get the facts and stay safe by being covered.
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