The short term Insurance Industry

Will they be there for you in time of need? Might not sound like the correct question but these things happen? When Insurance companies sell their products they promises "heaven and earth" even after life; especially those in the short term industry; i.e. car, household and any other form of short term insurance. My experience was that I had an accident last year over the festive weekend. I phoned my short-term insurance provider and they could not assist with a courtesy car. (***note that*** the courtesy car forms part of the insurance package). I had to literally force them to assist with a courtesy car, the person who drove into me had the same experience and the insurance turn their backs on the client. Three days after submitting my claim which was done on the Monday (1^st business day), the claims handler phoned me that they've decided to write off my vehicle, mind you this happens before any assessor was appointed, to inspect the damages on the vehicle. I obviously disputed this as according to my untrained eye the car could have been repaired at reasonable cost. A "coached" assessor was then appointed to go and write off the car as per instruction. This assessor then phoned me back agreeing with the claims handler that the car was in their terms "uneconomical to repair." I totally disagreed with them on procedure used and on principle and escalated the claim to the "manager" for a second opinion and a repairer/panelbeater of my choice. The process in itself had lots of bureaucracy which resulted in the manager protecting his colleague and the process was prolonged with a further two months. The claim started in January and was only settled in mid March. I had to make other plans in borrowing a car as the courtesy car was only covered for 30 days.

A few interesting facts to note before taking out insurance

Short-term insurance providers will write off your asset if they feel they will profit; with the term (uneconomical to repair).

Once submitting a claim you'll constantly have to follow up; as no one will phone you back informing you on progress or updates. (Unless you complain about poor service).

They will not follow up after taking out their product unless you're starting to claim that's when you'll know about hidden clauses (fine print).

Your agreed excess amount on the contract might even increase, regardless of the amount agreed beforehand.

Your might even held liable for tow in charges. They only cover up to a certain distance or amount.

They might not even provide the agreed cover when you need them most i.e. over the festive period/public holidays/weekends/etc.

They will have excuses such as assessors only work on certain days, brokers or car rental companies/repair workshops are not available.

You might not even get the courtesy car as agreed when taking the insurance. When you get the agreed courtesy car you'll have to pay a petrol deposit and other charges such as the windscreen, the tyres and an insurance excess if the rental car is involve in an incident.

It must also be noted that car rental companies insure their rental cars in pieces, you'll have to pay for a broken windscreen, and even the excesses might be more than the one from your insurance provider.

Your car might not be ready on time from the panelbeaters /car repair workshops due to public holidays/long weekends or the festive period in itself, by then the 30 days rental agreement on the courtesy car expires. You'll have to extend the period for your own account or being a pedestrian.

Your insurance provider who organises the courtesy car on your behalf don't cover the insurance of the rental car on your behalf, if something happens with the car whilst in your care you'll have to pay for excesses,windscreens,damages or even for third party claims if it is proven to be your fault.

Even worst if your car is written off and your claim is settled before your 30day courtesy car rental agreement expires then you must return the rental car or extend the rental agreement on your own account.

It must also be noted that if your car is written off, you don't get 1^st preference to buy it back; you'll have to bid for a car that was once yours, this also at an inflated price ranging from 75 to 100% in profits for the salvage company. The salvage company will also keep your accessories i.e. your sparewheel, tools and car battery and sell the car "voetstoots."

"DO WE REALLY DESERVE THIS TREATMENT"

 

SO many questions… SO little answers…