HONESTY AND DEALING WITH SOUTH AFRICAN CAR INSURANCE COMPANIES?
There is something funny about truth per se, because, somehow and sometime, it will (and does) come out. What are the possible repercussions, when you hide information from a car insurance company when signing up for a new policy? Read on, and ensure that you do the right thing.
THE TEMPTATION TO BE DISHONEST
You are hunting around to buy a car insurance policy and are looking for different quotes and discounts. In the process, you may well be tempted to leave out certain information in case you miss out on that great ‘deal.’ Avoid that at all costs, because it will catch up with you in the long run.Failure to disclose relevant information when buying a car insurance policy or submitting a claim is usually why disputes are declared after claiming for accident damage.1
SEE DISHONESTY IN THE CORRECT PERSPECTIVE
Looking at gaining, dishonestly, a 10% discount on a monthly premium for your new car insurance policy may save you R1000 – R2000 per year. But, what will happen when you have to claim? You discover to your horror that the claim has been rejected because you failed to disclose information at inception of the policy. Can you afford to lose R100 000 for the repair to your car as well as for that of the third party’s car? To say it another way, being dishonest with your insurer may be like driving around without cover. No one would want that.
THE INSURER NEEDS YOUR CORRECT RISK PROFILE
Most car insurance companies base everything on risk rating. What will it cost them to insure Mr X? If he has a clean driving record, his risk profile would be good, and he would pay a lower premium. The car insurance company must obtain from the client accurate information so that the ensuing risk profile is correct. Then, there won’t be any problems at claim time.
PARENTS TAKE OUT CAR INSURANCE POLICIES FOR THEIR CHILDREN
A lot of parents take out insurance policies in their own names, but then let their children drive their cars.1 The car insurance company has issued premiums based on the risk profiles of the parents, and hence the lower premiums. The risk profile of children will, very likely, differ considerably from those of their parents. Now little Johnny goes to a party and crashes dad’s Mercedes. Suddenly, there may be issues with the claim, and it may even be rejected.
WHAT SOMETIMES HAPPENS AT CLAIM STAGE
Those claiming may, in some instances, fabricate stories about the accident, but, unfortunately for them, this will backfire later on. Car insurance companies want to eliminate any chance of insurance fraud,2 and so, rest assured, each claim made is placed under a huge magnifying glass. The truth will somehow come out if facts were falsely reported.
WHAT WILL STOP YOU FROM BEING DISHONEST?
The very thought of having your accident claim rejected, and facing a R100 000 repair bill for your car and the third party’s car will surely dispel any attempt at dishonesty. It’s like being penny wise, pound foolish.
YOU CAN’T BEAT THE SYSTEM
In your own naïve way you are trying to get away dishonestly with low premiums. What you may not realise is that you are up against professionals as well as a highly sophisticated insurance system, designed to detect even the smallest traces of fraud.
DO SOME RESEARCH ON VARIOUS CAR INSURANCE COMPANIES
Spend your energy and time on researching various car insurance companies and see which one has the best offer. That’s the right way of doing it.
LOOKING FOR AFFORDABLE CAR INSURANCE? WHY NOT BUY IT USING PMD’S ONLINE INSURANCE PURCHASE PLATFORM?
Reading this article makes one realise that it’s just not worth the effort to defraud any insurance system, and that honesty is the best policy. You don’t have to be dishonest to get low premiums. You can use PMD’s Online Insurance Purchase Platform to purchase a policy that does not discriminate on where you live or whether you have been in previous accidents. It’s quick and easy to buy car insurance at a time that suits you. You can fine-tune your policy according to your requirements. A call-back facility is there should you need any help, and some audio and video materials are also available.