Extended car warranty is something not many people understand nor believe they should have, but with more and more people keeping their vehicles for longer than ever before, having it might just be a cost effective idea.
An extended car warranty is an additional form of insurance that covers the electrical and mechanical components of a vehicle in the event of damage or mechanical failure. The value of the plan taken directly affects the level of cover provided by the insurer.
While some people choose to purchase an extended warranty when purchasing a new car, others prefer to wait until just before the service or maintenance agreement of their vehicle ends.
What Does An Extended Warranty Cover?
Extended motor plans generally provide cover for expensive and unforeseen repairs such as mechanical breakdowns or electrical failures should they occur during the extended warranty agreement.
What Do Extended Warranties Not Provide Cover For?
Extended warranties generally do not cover scheduled service or maintenance components such as tune-ups, timing belt replacements, and oil changes. The majority of extended warranties also do not cover wear and tear items such as wiper blades and brake pads.
Here are 3 things vehicle owners should know about extended warranties:
Extended warranties do not necessarily need to be purchased on the same day as your vehicle. If, however, you are purchasing your vehicle using a car finance plan, then purchasing the warranty at the same time is advantageous as the cost for the extended warranty will be included in the loan.
Keep an up-to-date service and maintenance schedule as your cover can be affected by breaks in between scheduled service and maintenance.
Always check to make sure whether extended warranty plans are a prerequisite for financing, as this may not always be the case.
As with any warranty cover, it is vital to read through and understand the fine print before deciding to purchase. Navigating your way through any motor vehicle related documentation can be confusing and frustrating, which is why we highly recommend that you always consult an industry professional to shed light on complicated terminology and legalese!
Let’s be honest; no one gets excited about insurance and having to pay for it. It is a necessary ‘evil’ which all motorists should have because like it or not, the day will come when its desperately needed.
When you consider the state of our roads and the reckless behaviour of most drivers in South Africa, coupled with the high occurrences of car hijackings, vehicle theft and frequency of road accidents, vehicle insurance is something all motorists should invest in.
In the event something happens to your vehicle, it is comforting to know that you have insurance to fall back on. Comprehensive car insurance is the most recommended option to protect both you and your vehicle, and is usually mandatory if you have a vehicle finance agreement in place. However, if your household budget does not allow for comprehensive cover, then the minimum insurance you should take out on your car is third-party insurance that includes fire and theft. Bear in mind though, that third-party vehicle insurance only covers the damage that your vehicle causes to other people’s vehicles or property.
According to the AA (Automobile Association of South Africa), between 65 and 70% of the estimated 12 million vehicles on South African roads are uninsured, and this percentage is growing annually. If you are involved in a crash, you only have a three in ten chance of the other driver being insured and able to cover any damages. If the accident is your fault, it is even more important to be covered comprehensively.
“It’s for this reason, among others, that, if you are considering cancelling your car insurance to cut back on expenses, to rethink this. If something were to happen to your car, knowing you are covered is one less thing to worry about,”says Kutlwano Mogatusi, WesBank Motors communications specialist.
Car insurance is a way of protecting your car – and yourself – against the harm and the costs if your vehicle is involved in an incident such as an accident or theft. By paying a monthly insurance premium, your personal return on investment is knowing that your vehicle is covered by your insurer. If your vehicle is comprehensively insured with a reputable insurer, you will be covered for a vehicle accident, a natural disaster, fire, or theft. If the unfortunate incident is your fault and damage is caused to another vehicle, driver or passengers, or a pedestrian, your insurance would cover you for that too. Having car insurance is similar to having a safety net should something go wrong.
“Knowing why you need car insurance is one thing, but making sure you choose the policy that will best safeguard your vehicle, is another. The right policy ensures that your vehicle is safe from natural disasters, the threat of theft or fire, third party cover, damages, or even a total write-off of the car resulting from an accident,” explains Mogatusi.
“The best car insurance policies include vehicle repairs and replacements, reimbursement for damages to the other party or parties from an accident you cause, car hire while your car is being repaired and even roadside assistance. When you report a claim to your insurance company, a representative will manage the claims process and assist you with any questions you may have. Shopping around for a policy that suits both your needs and your pocket is advisable. Be sure to read, and understand, the terms and conditions within the fine print too – you don’t want any nasty surprises if you need to make a claim.”
Understanding the factors that can affect the amount you pay on your monthly premium will also help you make an informed decision on which insurance policy to invest in. This starts with the type of vehicle you drive – a luxury car will attract a higher insurance premium, while an older vehicle or a second-hand car with a lower market value will cost less to insure. Even the colour of the vehicle can impact the insurance cost, with white or lighter-coloured cars attracting a lower premium, as will other factors such as your age, where you live and work, and the length of time you have been a licensed driver.
If you are a recent graduate or young professional, and have been driving for less than five years, you are considered to be an inexperienced driver to the insurance company, no matter how competent a driver you may be. The insurer considers an inexperienced driver to pose a greater risk, which will affect your monthly premium amount. How you manage your personal finances, and your credit history will also be considered as the insurance provider needs to ascertain your risk profile when determining your premiums.
While the monthly premiums for insurance may seem like a grudge payment, it is important to consider the alternative: if you are involved in an incident and have no insurance cover, you will have to pay for the damages to your car and the other vehicle from your own pocket, if it is your fault.
“There are many insurance deals for vehicles on the market, so shop around. Also consider the extra benefits on offer such as roadside assistance, discounts for good driving or lowering your premiums annually as your vehicle depreciates in value. Look for the best deal to suit your pocket,” concludes Mogatusi.
Swerving on pothole filled roads makes you look like a very intoxicated driver.
Potholes have become the norm on South African roads and it is not always possible to avoid driving through them. Here are a few guidelines on what to do if you hit one or more potholes.
Be Aware Of Weather Conditions and Dim Light
Be especially cautious when driving in wet and low light conditions as potholes are very difficult to identify in such circumstances.
Be Aware of Oncoming Traffic
When trying to avoid a pothole drivers may automatically swerve into the lane of oncoming traffic road but this could be risky and highly dangerous. If you do need to move into the lane of oncoming traffic be utterly confident that it is safe to do so.
Stay The Course
If you realise too late that you are about to hit a pothole, it is advisable that you drive straight towards it and not make any sudden steering movements as this might unsettle your car. Sudden braking or accelerating could also jeopardise your safety and that of people around you.
After hitting a pothole….
Assess the damage
Stop to check for damage to your tyre and rim if it is safe to do so. Look out for cuts or bulges on the sidewall of the affected tyres.
If it is not safe to stop, reduce your speed and continue driving while actively listening out for anomalies coming from your tyre such as the hissing sound of air escaping from your tyre.
Also check that your car is not pulling to one side.
Check Your Insurance Cover
Review your insurance policy and make sure that it covers damage caused by potholes, if it does not, shop around for a more progressive insurance company which offers this very vital cover.
Your car insurance costs are, in a way, a reflection of who you are as, in most instances, the rates you pay are determined by factors such as where you live and your driving history.
Accidents can happen to anyone at any time, but reports of how one occurred, can differ considerably.
In addition to following the normal process of collecting information, taking pictures also comes in handy; after all, pictures say a thousand words. That said, it is important to keep in mind that the purpose of taking pictures at an accident site is for photographic evidence and notto show off the gory nature of the accident.
Here are a few tips on the types of pictures you should ideally take at the scene of an accident.
“Set the stage: Before you begin clicking away at the accident damaged cars, you need to “set the stage” of the accident. This allows you to “bring the accident site to the insurer” for the obvious reason that those people were not present when the accident took place. Taking pictures which allow them to be present at the scene allows them to get a better understanding of what happened moments before the collision.
The position of the vehicles: Take images from all four directions (north, south, east and west) and include all the affected vehicles, road markings, street names, traffic signage, road surface/condition, etc. Ensure that you include portions, if not the entire vehicle, so that your car’s placement can be viewed in relation to the accident. These images will make it easier to show how the vehicles came to a stop in the position they did, after the accident occurred.
Position of damage on the vehicle: Many people tend to take pictures of the damage on their car which sadly, is not as relevant to accident investigators, as the position of the damage on the car. Don’t get it wrong – showing the damage is important but it is only part of the evidence required to help make your case. Rather, take images that show the damage in relation to the surrounding, undamaged area of the car. For instance, if another driver collided with yours from the left, take pictures of the entire left-hand side of the car, as well as a close-up of the damaged area.
Road conditions / General environment: Focus on damage to the surroundings as a result of the accident. These could include fluid spills, tyre/skid markings, pieces that may have come off the accident-damaged vehicles, road markings, road signs (or the absence thereof), street lights, potholes, road works, mile markers and any other unique features. Remember to keep your car (portion of or whole) in the frame as a “reference” point.
Documentation: It is important to take pictures of the documents belonging to all parties involved. These should include driver’s licenses, IDs, license disks and/or license plates, and vehicle branding. In addition, it is advisable to take pictures of any injuries you or others might have sustained, including medical reports of your check-up post the accident.
Remember to clean the lens of your phone camera so that the images are clear and the text on the licenses and car branding is easy to read; and that it is illegal to distribute images of other people without their consent. The pictures you take should only be used to aid your version of events.
NB: This article is a guide and does not represent any insurance, legal or accident codes of behavior.
For many people, car insurance is a grudge purchase because it isn’t something many people are excited to pay; yet without it, you could find yourself in long-term financial difficulties if your car isn’t covered by insurance.
If you are thinking of cutting back on your monthly expenses by saving on car insurance payments, you might end up thinking again if something were to happen to your car – and, even more so if the incident is your fault. As a first-time car owner, paying for insurance should be a must-have line item within your monthly budget.
Car insurance is a way of protecting your car – and yourself – against the harm and the costs if your vehicle is involved in an unfortunate incident such as an accident or gets stolen. By paying a monthly insurance premium and your personal return on investment is the peace of mind that comes with knowing that your vehicle will be covered by your insurer.
Knowing why you need car insurance is one thing but, making sure you choose the policy that will best safeguard your vehicle, is another– Kutlwano Mogatusi, WesBank Motor communication specialist
If your vehicle is insured with a reputable insurer catering for your needs, you will be covered for a vehicle accident, a natural disaster, fire or theft. In the unlucky incident that the accident is your fault and damage is caused to another vehicle, the driver or passengers, or even a pedestrian, your insurance should cover you for that too.
So, why do you need car insurance?
Well, if life were predictable, and we could see into the future through a crystal ball, we might think of insurance as an unnecessary cost. However, because it isn’t, and we can’t, having car insurance is like a safety net if something goes wrong.
Also, if you are trying to settle an insurance claim with a third party who has damaged your vehicle, you can call on your insurance company to resolve the matter. It takes the stress out of the process, and you don’t need to get involved in the admin related matters. You also have the peace of mind that it will keep your car safe in the case of an unforeseen curved ball that life might throw your way.
“Knowing why you need car insurance is one thing but, making sure you choose the policy that will best safeguard your vehicle, is another. The right policy ensures that your vehicle is safe from natural disasters, the threat of theft, fire, third party cover, damage or even a write-off resulting from an accident. This is comprehensive insurance cover, and it is usually mandatory if you have a vehicle finance agreement with a financial institution such as WesBank,” explains Kutlwano Mogatusi, WesBank Motor communication specialist.
A luxury car will attract a higher insurance premium, while an older vehicle or a second-hand car with a lower market value will cost less to insure
– KUTLWANO MOGATUSI, WESBANK MOTOR COMMUNICATION SPECIALIST
Knowing how insurance works will serve you well
The best car insurance policies include vehicle repairs and replacements, reimbursement for damages to the other party or parties from an accident you cause, car hire while your car is being repaired, and even roadside assistance. When you report a claim to your insurance company, a representative should be available to manage the claims process and assist you with any questions you may have.
Shopping around for a policy that suits both your needs and your pocket is advisable. Be sure to read, and understand, the terms and conditions within the fine print too – you don’t want any nasty surprises if you need to make a claim.
“Knowing what factors can affect the amount you pay on your monthly premium will also help you make a more informed decision on what insurance policy to use.
This starts with the type of vehicle you drive – a luxury car will attract a higher insurance premium, while an older vehicle or a second-hand car with a lower market value will cost less to insure. Even the colour of the vehicle can impact the insurance cost, with white and lighter-coloured cars attracting a lower premium,” explains Mogatusi.
With so many car insurance deals on the market, you can shop around for the best rates.
– KUTLWANO MOGATUSI, WESBANK MOTOR COMMUNICATION SPECIALIST
Factor which affect your premiums
Living in South Africa, the risk of vehicle theft is a real issue too, and some makes of cars are more of a target for thieves and crime syndicates. Again, this can influence your insurance policy premium because the insurer will take into account the increased risk in insuring your vehicle.
Premiums can also be affected by other factors such as your age, where you live and work, and the length of time you have been a licensed driver. How you manage your personal finances and your credit history will also be considered as the insurance provider needs to ascertain your risk profile when determining your premiums.
As a young professional, if you have been driving for less than five years, you are considered an inexperienced driver to the insurance company. No matter how competent a driver you may be, the insurer considers an inexperienced driver to pose a greater risk if you are involved in an accident. Again, this will affect your premiums, as will the noting of who the regular driver of the vehicle is. It is important to ensure these details are listed correctly.
Always look for the best deal to suit your pocket; we will always recommend comprehensive insurance as first prize.
– KUTLWANO MOGATUSI, WESBANK MOTOR COMMUNICATION SPECIALIST
A high safety rating and increased safety measures in the car can attract a lower insurance premium. This is because the vehicle has less chance of being broken into and features such as airbags, ABS brakes, a seat-belt warning system and rear-view camera could assist in lessening the damage in the case of an accident.
While the monthly premiums for insurance may seem like a grudge payment, it is important to consider this in alternative light.
If you are involved in an incident and have no insurance cover, you will have to pay for the damages to your car and the other vehicle, if it is your fault, from your own pocket.
“With so many car insurance deals on the market, you can shop around for the best rates. Consider the extra benefits on offer too, such as roadside assistance, discounts for good driving or lowering your premiums annually as your vehicle depreciates in value.
Look for the best deal to suit your pocket. We will always recommend comprehensive insurance as first prize. If this is not affordable in your current circumstances, make sure that at the very minimum you then have the basics of fire, theft and third-party covered,” says Mogatusi.
Insurers routinely ‘write off’ vehicles and these vehicles are sold within a salvage contract to auction yards
– Richard Green, National Director of SAMBRA
The South African Motor Body Repairers’ Association (SAMBRA), an Association of the Retail Motor Industry (RMI), is concerned about the lack of information available to the market with regards to the status of second-hand vehicles.
Richard Green, National Director of SAMBRA, says at present there is no way for a consumer to find out if the second-hand vehicle they are purchasing has been previously written off. “Not only does this have serious legal and cost ramifications, but it talks to the safety of motorists and a growing pool of unroadworthy and perhaps even stolen vehicles on our roads,” says Green.
According to Green, insurers routinely ‘write off’ vehicles and these vehicles are sold within a salvage contract to auction yards.
“While there is nothing wrong with this on face value, the problem comes in when these vehicles, still registered as Code 2 (the description for a used car) are sold to any buyer willing to pay the highest price on auction. In many cases, these vehicles are bought by dubious repairers and sold back into the system for a good profit via digital sales platforms or unsuspecting used car traders. This is where the system goes awfully wrong as the second unsuspecting buyers often ends up with a vehicle that has previously been written off by an insurer, deemed uneconomical to repair. It also has not been reclassified as a Code 3 vehicle and the purchaser has no way of checking the history.”
Most vehicles stolen by professional thieves have a high value and are never recovered
– RICHARD GREEN, NATIONAL DIRECTOR OF SAMBRA
Further problems
The other problem facing the industry is if the cars are not repaired and sold on, they can be bought by hijacking syndicates.
“Most vehicles stolen by professional thieves have a high value and are never recovered, as they’re either stripped for parts and the bodies dumped or re-birthed under new identities. These written off vehicles provides the perfect foil for this illegal activity. The severely damaged vehicles are bought on auction to obtain Code 2 registration documents which are then used to re-register stolen vehicles. The VIN and engine numbers on the stolen or hijacked vehicle is changed to match the “written off” vehicles papers and the scrapped licence plates are used on the stolen car. For the unsuspecting buyer it is almost impossible to check the validity of his car papers,” says Green.
Green adds that it is for these reasons that SAMBRA have requested SAIA (South African Insurance Association) to make this information available in the form of the VIN number of the vehicle so that consumers can be properly informed prior to making a used car purchase decision.
The information is routinely forwarded to SAIA from all insurance companies yet the request to SAIA has been denied to date. SAMBRA believes a formal, publicly accessible write off register will minimise the illegal use of vehicle identifiers in the re-birthing of stolen vehicles and in curtailing stolen vehicle parts being used in the repair of damaged vehicles. It will also help eliminate unsafe vehicles for unsuspecting purchasers.
“Practically, if there is not a market for these cars, the practice will have to slow down,” he says.
“Access to the write-off register is the only way one can check those repairable written-off vehicles don’t contain stolen parts and it is the only way to take severely damaged vehicles off the road permanently. We need that “write off’ register as a vehicle remains on the register for the rest of its life, even if it’s repaired or ownership is transferred,” concludes Green.
We hear too often of motorists who are involved in crashes and the have their vehicles towed away from the scene without their permission
Being stuck on the side of the road is an unpleasant, and sometimes scary, situation for anyone. This can be even worse if you are stuck because of a crash. The Automobile Association (AA) advises all motorists to be aware of their rights, and in control of events, in such a situation.
“We hear too often of motorists who are involved in crashes and the have their vehicles towed away from the scene without their permission, or where their vehicles are taken and then towed and stored at excessive daily rates. There is no need for this to happen; motorists have rights and they must enforce these if they are able to,” notes the AA.
The Association says it is important to note that not all tow truck operators are unscrupulous, and that there are more professional, ethical operators out there than those who aren’t. These are accredited service providers who adhere to strict rules and ethics.
It is, says the AA, also important to recognise that tow trucks provide a valuable service to motorists who are stranded on the side of the road due to mechanical breakdowns or as a result of crashes. “Towing can be costly. If you are not in a financial position to pay a large once-off fee for towing we would advise vehicles owners to explore options which cover these costs,” says the AA.
It is important for motorists to understand they are in charge of the vehicles, and that they do not have to be intimidated into doing anything they don’t want to do
Among the tips the AA gives to motorists in relation to towing services are:
If you are involved in an incident, and are able to do so, contact your insurer first; don’t let someone else contact them on your behalf,
“It is your right to choose a tow truck driver, not anyone else’s. If you are incapacitated and only under these circumstances may police or emergency personnel on the scene make a decision on who should tow your vehicle
Always check and read any documentation carefully before signing anything,
Motorists should be encouraged to use a branded tow operator wherever possible and preferably one that belongs to an association so that there is accountability should there be any problems.
If you are insured, contact your insurance provider for advice,
If your insurance includes cover for towing, contact the emergency number provided with your cover,
Get all the relevant information from the tow truck operator before allowing him to move your vehicle. This should include their name, company name, company registration or association registration number, contact number and physical address (and address of their storage yard if it is different to their physical address), and the registration number of the vehicle. If possible, take a photograph of your vehicle with the tow truck before it leaves,
Establish upfront, and in writing if possible, how much the service is going to cost (including per kilometre rates), and how much any storage costs will be, especially if you do not have any cover,
Remove all valuables from your vehicle before it is towed (remember to check everywhere), and,
Contact the AA for assistance, if you are Member.
“It is important for motorists to understand they are in charge of the vehicles, and that they do not have to be intimidated into doing anything they don’t want to do. Being covered through insurance is the best option, but even without it, no-one has the right to take your vehicle without your consent,” advises the AA.
Every driver should know what the stance of their insurer is with regard to post-curfew driving
– eugene herbert, managing director of MasterDrive
South Africans are rejoicing at the news that lockdown restrictions have been lowered to level two. This will allow drivers to move more freely between provinces but the curfew remains in place. Some drivers are questioning what are the insurance consequences of driving after curfew and being involved in a crash.
The managing director of MasterDrive, Eugene Herbert, says the company consulted their insurers to provide some context. “Our insurers say that a claim for a crash after curfew would not be rejected on those grounds alone. They, however, encourage drivers to avoid being on the road after 10pm unless it is an emergency.
“Additionally, while they can speak to their own policies about the validity of claims that occur after 10pm, this may vary between insurers. Every driver should know what the stance of their insurer is with regard to post-curfew driving.
This is especially so for those driving home from a late shift and drivers who are legitimately allowed on the road at that time. Speak to your insurer now about what they expect and your unique circumstances rather than argue it after the fact,” says Herbert.
It is a folly to think that you have no chance of crashing on your quick trip to the shop down the road
– EUGENE HERBERT, MANAGING DIRECTOR OF MASTERDRIVE
Cancelling insurance
Drivers trying to reduce their monthly expenses are also advised against cancelling their insurance premiums. “Even if you will still be working from home for the foreseeable future, cancelling your insurance can have numerous negative results. Primarily, insurance is there to protect you when the unexpected happens, whether this is vehicle theft or a crash. As crime is expected to rise in the coming months cancelling insurance is a risky decision.
“Additionally, it is a folly to think that you have no chance of crashing on your quick trip to the shop down the road. Research says that at least half of all crashes happen five minutes away from home because people drive with an ‘auto’ mindset, face an increased chance of being involved in a parking lot collision and have a greater tendency to drive distracted. Ultimately, it could cost you thousands more,” says Herbert.
Find out what your coverage will be if you are caught out after curfew
– EUGENE HERBERT, MANAGING DIRECTOR OF MASTERDRIVE
Other disadvantages of cancelling your insurance for a brief period include
Higher premiums once you resume insurance coverage as your risk profile will be higher.
Breach of contract if your vehicle is still under finance, which can put you at risk of losing the vehicle.
In both of these scenarios it pays to know where you stand. “Find out what your coverage will be if you are caught out after curfew, for whatever reason, or if you qualify for a reduction while working from home. Either way, knowledge is power when you make a decision related to your insurance coverage,” says Herbert.
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