Car insurance Part 2

TYPES OF MOTOR INSURANCE
There are three basic types of motor insurance, from very basic to comprehensive. TIP IT’S IMPORTANT TO KNOW WHAT YOU’RE COVERED FOR, BECAUSE THAT NOT ONLY DETERMINES HOW MUCH YOU PAY FOR YOUR INSURANCE, BUT ALSO WHAT YOU GET OUT WHEN YOU MAKE A CLAIM.

No-claims bonus: Some insurers will pay you a bonus if you don’t claim for a number of years as stipulated in your policy. This incentivizes you to not claim for small amounts as you’ll lose your bonus!
Loyalty bonus: Some insurers pay out a bonus irrespective of whether you claim or not. This is done to incentivize (and reward) customer loyalty.
Discounted premiums: Instead of a lump sum bonus after a certain period, you may receive a premium discount as a reward for your loyalty

WHERE TO BUY INSURANCE
So you understand motor insurance, but how do you actually go about buying it? Traditionally people bought insurance through brokers, who assisted in getting the most suitable cover at the best price. In return for their services, the insurance company would pay the broker a commission. Nowadays many people prefer to buy insurance directly from an insurance company, or using an internet “site aggregator” which compares premiums from various companies to assist one in obtaining insurance at the best price.

WHAT IF YOU ARE UNFAIRLY TREATED?
If you feel that you haven’t been treated fairly, then first explain your case to your insurer. If they aren’t willing to change their decision, then you can take your case to the Ombudsman who will assess your case and do their best to make a fair decision. REMEMBER: THE OMBUDSMAN DOES NOT WORK FOR ANY INSURER! HE OR SHE WILL ASSESS YOUR CASE ON ITS MERITS AND MAKE A FAIR DECISION.

Not happy with the way your insurer handled your claim? Tell your concerns to the Ombudsman for Short-term insurance at 011 726 8900 or info@osti.co.za, or www.osti.co.za or P O Box 32334 Braamfontein 2017.

If you are not happy with the advice you received you can talk to the FAIS Ombud at 012 762 5000 / 012 470 9080 or info@faisombud.co.za or www.faisombud.co.za The Ombud’s services are free and accessible to all consumers. Still not fully happy? You can reach the Financial Services Board at 0800 20 20 87 or info@fsb.co.za or www.fsb.co.za

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