Pineapple
Pronounced /əkˈsɛsəriz/
Definition: Non-standard additions, aftermarket parts or modifications fitted to a vehicle that enhance its functionality, appearance, or comfort. Accessories can be factory-fitted or added after purchase and may need to be specified in an insurance policy to be covered.
Example(s):
Abdul upgrades his vehicle’s sound system to enhance the car’s infotainment.
Justin fits a roof rack on his 2023 Toyota Hilux 2.8GD-6 Double Cab 4×4 Raider for extra luggage.
Vuyo’s 2021 Volkswagen Golf GTI TCR has alloy rims and custom spoilers added to enhance the overall look.
Why Accessories Matter: Standard car insurance policies may only cover factory-fitted accessories. If valuable extras aren’t listed in the policy, they might not be covered in case of theft or damage.
Exclusions (because even comprehensive cover has its limits): Accessories that increase risk, such as illegal lighting modifications, may not be insurable. Performance modifications, like engine tuning and turbochargers, may require a different type of cover.
Accessories in South African Insurance Policies: Most South African insurance providers allow you to specify and insure aftermarket accessories separately. If not declared, these items may not be included in the payout in case of a claim. Some policies cover factory-fitted accessories automatically, but always check the policy wording to confirm.
Pronounced /ˌaksɪˈdɛntl ˈdamɪdʒ/:
Definition: Unplanned events that cause unintended physical damage to the insured item.
Example(s):
Why Insuring Against Accidental Damage Matters: Life is unpredictable, as are accidents. Accidental damage coverage helps you avoid the ‘eish’ and ‘eina’ moments of life; it ensures you’re financially protected from sudden mishaps that aren’t caused by intentional damage.
Exclusions (because even comprehensive cover has its limit): It’s important to note that accidental damage cover may have certain exclusions, such as:
Accidental Damage In South African Insurance Policies: Accidental damage is typically covered under comprehensive car insurance policies. Comprehensive cover provides financial protection for a wide range of unexpected incidents that can damage a vehicle.
Pronounced /əˈdɪʃən(ə)l ˈspɛʃl ɛkˈsɛs/:
Definition: Additional, or special, excess is the extra amount a policyholder must pay on top of their chosen basic excess under specific circumstances, as outlined by the insurance provider.
Example(s):
Why Insuring Additional Excess Matters: Insurance providers may apply additional or special excesses to account for higher-risk scenarios. This helps keep premiums lower while ensuring that high-risk claims are properly accounted for.
Exclusions (because even comprehensive cover has its limit): If you fall under multiple categories, that would normally mean extra charges. Thankfully, there’s a maximum limit of 3 scenarios, so you’ll never pay more than that.
Additional Excesses in South African Insurance Policies: Many South African insurance providers often include special excess clauses in their policies for drivers under a certain age, claims involving theft or hijacking, and vehicle modifications. Policyholders should check their policy schedule to understand when these extra excesses apply.
Pronounced /ɔːl rɪsk/:
Also known as single items insurance, per item insurance or simply “stuff”
Definition: Single-item insurance coverage that automatically protects valuable personal items—like phones, drones, coin collections, and laptops—against any risks or perils that are not explicitly excluded in the policy. Typically, it covers theft, accidental loss, or damage anywhere in the world.
Example(s):
Why All-Risk Insurance Matters: Valuable items are too precious (and expensive) to leave up to chance. Unlike standard contents insurance, which mainly covers items inside the house, all-risk insurance ensures protection anywhere, giving policyholders peace of mind that their essentials are covered wherever they go.
Exclusions (because even comprehensive cover has its limit):
All-Risk Insurance In South African Insurance Policies: South African insurers usually require policyholders to specify high-value items and their replacement costs. Some offer “unspecified” all-risk cover with a capped limit per item. Claims may require proof of ownership, such as receipts or valuation certificates.
Pronounced /əˈpɔɪntɪd ˈdrʌɪvə/:
Definition: A designated person who is officially named on an insurance policy as an authorised driver of the insured vehicle. The policy’s coverage also applies to this elected driver when using the car under the policy’s terms.
Example(s): A parent adds their adult child as an appointed driver on their car insurance policy.
Why Appointing A Driver Matters: Insurance providers need to know who is driving the vehicle regularly, as risk factors (like age, experience, and claims history) affect premiums. Having an appointed driver ensures clarity on who is covered and helps prevent claim disputes.
Exclusions (because even comprehensive cover has its limits):
Appointed Driver in South African Insurance Policies: South African insurance providers may require policyholders to list all regular drivers to avoid complications when claiming. Some policies allow for occasional drivers, while others enforce stricter limitations on who may operate the insured vehicle.
Pronounced /bəˈluːn ‘peɪm(ə)nt/:
Definition: A large, final lump-sum payment due at the end of a vehicle finance agreement. It allows you to pay lower monthly instalments during the loan term by deferring a significant portion of the total cost to the end.
Example(s):
Why Balloon Payments Matter: Balloon payments make it easier to afford a car by lowering and making the monthly repayments more affordable. But, they require financial planning to ensure you can pay the lump sum when it’s due—either through savings, refinancing, or selling the car.
Exclusions (because not all financing deals include balloon payments):
Balloon Payments in South African Insurance Policies: When insuring a car with a balloon payment, credit shortfall cover may be needed. This ensures that if the car is written off before the balloon payment is settled, the financial house still receives the outstanding amount.
Pronounced /ˈbɛtəmənt/:
Definition: The principle where an insurance provider may require a policyholder to contribute towards repair costs if the repairs result in an improvement to the insured vehicle beyond its original condition before the damage occurred.
Example(s):
Why Betterment Matters: Insurance is meant to restore, not improve. If repairs enhance a vehicle’s condition beyond what it was pre-accident, the insurer may not cover the full cost, requiring the policyholder to pay the difference.
Exclusions (because even comprehensive cover has its limits):
Betterment in South African Insurance Policies: Betterment clauses may appear in insurance policies for older vehicles where replacing outdated parts can automatically result in an upgrade. Your insurance provider will often factor in depreciation to determine any betterment contribution.
Pronounced /ˈbɪznəs juːs/:
Definition: This vehicle usage classification in car insurance policies covers vehicles used for work-related travel beyond everyday commutes. It includes driving to meetings, visiting clients, and transporting business-related items, but it excludes commercial use like deliveries or ride-hailing services.
Example(s):
Why Business Use Matters: Using our car for work beyond normal commuting means insurance providers may require business-use coverage to ensure adequate protection. Using your vehicle for work purposes without correctly classifying it under your policy could result in a rejected claim.
Exclusions (because even comprehensive cover has its limits):
Business Use in South African Insurance Policies: Insurance differentiates between private use, business use, and commercial use. Business-use policies must be selected if the car is driven for work beyond commuting—otherwise, a claim could be rejected.
Pronounced /kɑːr ˈhaɪər/
Definition: A temporary vehicle rental provided under an insurance policy when the insured car is stolen, written off, or undergoing repairs due to a valid claim. This ensures you’re still able to get around freely while waiting for your car to be restored or replaced.
Example(s):
Why Car Hire Matters: Having car hire as an add-on ensures continued mobility during an insurance claim. Without car hire cover, policyholders may face out-of-pocket expenses for temporary transport, which can be costly.
Exclusions (because even comprehensive cover has its limits):
Car Hire in South African Insurance Policies: Car hire is often offered as an optional add-on, allowing policyholders to select coverage for rental costs when their vehicle is out of commission.
Pronounced /kleɪm/
Definition: A formal request made to your insurance provider for financial compensation or repairs following a covered event, like an accident, theft, or natural disaster.
Example(s):
Why Claims Matter: Insurance exists to provide financial protection when unplanned perils happen. A successful claim means the policyholder receives assistance in repairing, replacing, or reimbursing for damages or losses.
Exclusions (because even comprehensive cover has its limits):
Claims in South African Insurance Policies: Claims typically must be reported within a specific timeframe (often within 30 days of the incident).
Pronounced /kleɪm ˈhɪstəri/
Definition: A record of all your insurance claims, which insurance providers use to assess risk and determine premium costs. A clean claims history (few or no claims) can mean lower premiums, while frequent claims may lead to higher costs.
Example(s):
Why Your Claims History Matters: Insurance providers assess risk based on past claims—a policyholder with a history of frequent claims may be considered higher risk, leading to higher premiums or exclusions. Whereas maintaining a good claims history can reduce insurance costs over time.
Exclusions (because even comprehensive cover has its limits):
Claims History in South African Insurance Policies:
Insurance providers typically use a centralised claims database to track past claims. When applying for a new policy, they check this history to assess risk, meaning switching insurers won’t erase previous claims.
Pronounced /ˌkɒmprɪˈhɛnsɪv kɑːr ˈɪnʃʊrəns/
Definition: A top-tier car insurance policy that covers damage to your car, third-party property damage, theft, fire, and natural disasters like hail or flooding. It offers the broadest protection compared to other insurance types.
Example(s):
Why Comprehensive Car Insurance Matters: Comprehensive vehicle insurance ensures full protection against both accidental and external risks, reducing financial burden in case of loss or damage.
Exclusions (because even comprehensive cover has its limits):
Comprehensive Car Insurance in South African Insurance Policies: Most South African insurers recommend comprehensive cover, especially for financed vehicles. Some policies allow optional add-ons like car hire, credit shortfall cover, and SASRIA insurance.
Pronounced /kəˈmɜːʃəl juːs/
Definition: A classification of vehicle insurance for cars, trucks, or motorcycles used primarily for business activities such as deliveries, ride-hailing (e.g., Uber, Bolt), or transporting goods and services.
Example(s):
Why Commercial Use Matters: Using a personal vehicle for commercial purposes without the right insurance can lead to claim rejections if an accident occurs while working.
Exclusions (because even comprehensive cover has its limits):
Commercial Use in South African Insurance Policies: South African insurers distinguish between business use and commercial use. Commercial use policies often have higher premiums due to increased driving hours and risks.
Pronounced /ˈkrɛdɪt ˈʃɔːrtfɔːl/
Definition: Insurance that covers the difference between what a car insurance provider pays out after a total loss (typically the retail value) and what the policyholder still owes on their vehicle loan. This prevents financial gaps if the car’s insured value is lower than the outstanding debt.
Example(s):
Why Credit Shortfall Matters: Without credit shortfall cover, a policyholder could still owe money to the bank after their car is written off, even though they no longer have the vehicle.
Exclusions (because even comprehensive cover has its limit):
Credit Shortfall in South African Insurance Policies: Credit shortfall insurance is usually recommended for financed vehicles. This is because depreciation can quickly reduce a car’s value compared to the loan balance. Plus, it’s often an optional add-on to comprehensive car insurance policies.
Pronounced /ˈkuːlɪŋ ɒf ˈpɪəriəd/
Definition: A legally mandated period (usually 14 days) after purchasing a short-term insurance policy where a policyholder can cancel the policy without penalties and receive a full refund, provided no claims have been made.
Example(s):
Why a Cooling-off Period Matters: They provide consumer protection, ensuring policyholders are not locked into an insurance contract without sufficient time to review terms and costs.
Exclusions (because even comprehensive cover has its limits):
Cooling-Off Period in South African Insurance Policies: Under South African consumer protection laws, policyholders typically have a 14-day cooling-off period, but this may not apply to short-term or commercial policies.
Pronounced /dɪˌpriːʃiˈeɪʃən/
Definition: The gradual decrease in a vehicle’s value over time due to wear and tear, age, and market conditions. The more mileage your car covers, the higher the likelihood it needs servicing and repairs. This loss of value is accounted for by depreciation.
Example(s):
Why Depreciation Matters: Since vehicles lose value over time, some insurance providers base payouts on the retail value at the time of a claim—not the original purchase price. Depreciation also impacts credit shortfall insurance, as loan amounts may remain higher than the car’s depreciated value.
Exclusions (because not all cars depreciate at the same rate):
Depreciation in South African Insurance Policies: Most South African insurance providers settle claims based on the car’s retail value. This value reflects the amount a dealer would sell the same make and model for at the time of the claim. This is often more favourable than market value, which typically factors in depreciation more aggressively.
Pronounced /draɪv lɛs ˈbɛnɪfɪt/
Definition: Pineapple’s cash refund reward system allows policyholders who drive fewer than 300 kilometres per month to qualify for a cash refund of up to 30% of their monthly premium. It’s designed for South Africans who don’t drive much, whether that’s because they have a second vehicle, work from home, or just prefer to walk. This benefit offers additional financial savings.
Example(s):
Why the Drive Less Benefit Matters: The less you drive, the lower your risk of accidents. This makes our job easier. And makes insurance more affordable for those who don’t use their cars a lot.
Exclusions (because even comprehensive cover has its limits):
Drive Less Benefit in South African Insurance Policies: The Drive Less Benefit name is uniquely Pineapple’s, however, other insurance providers may offer a similar benefit. This benefit is great for remote workers, retirees, or people who use alternative transport often.
Pronounced /dɪsˈkləʊʒər/
Definition: It’s your duty as a policyholder to be honest and give complete information to your insurance provider. This includes info about your car, driving habits, claims history, and any relevant risk factors. Not disclosing these crucial details can result in rejected claims or a cancelled policy.
Example(s):
Why Disclosure Matters: Full disclosure allows insurance providers to correctly calculate insurance premiums and valid claim payouts. Hiding or misrepresenting information can result in a cancelled policy and loss of coverage when you need it most.
Exclusions (because even comprehensive cover has its limits):
Disclosure in South African Insurance Policies: Under South African law, the non-disclosure of material information (like previous accidents, modifications, or additional drivers) justifies an insurance provider’s denial of claims.
Pronounced /ɪˈmɜːrdʒənsi əˈsɪstəns/
Definition: A service included in many car insurance policies that provides immediate help in case of emergencies. Motorists suffering from vehicle breakdowns, accidents, or other emergencies, such as towing, fuel delivery, battery jump-starts, and roadside assistance, can call their insurance provider and request assistance.
Example(s):
Why Emergency Assistance Matters: Car trouble can happen anytime, anywhere. Having emergency assistance means having fast, reliable help, on call. This saves you from stress, safety risks, and unexpected expenses.
Exclusions (because even comprehensive cover has its limits):
Emergency Assistance in South African Insurance Policies: Insurance providers typically classify an emergency as any sudden and unexpected event, which threatens your safety and that of the people involved or could lead to increased loss if left unattended. Emergency assistance is typically provided nationwide and usually includes towing, fuel top-ups, jump-starts, locksmith services, and accident scene support.
Pronounced /ˈɛksɛs/
Definition: The amount you, as the policyholder, must pay out of pocket before your insurance provider covers the rest of a claim. It helps prevent small or unnecessary claims and keeps insurance premiums affordable.
Example(s):
Why Excess Matters: Excess keeps insurance costs reasonable by ensuring all policyholders share in the cost of a claim. It also helps reduce fraudulent claims and encourages responsible vehicle maintenance.
Exclusions (because even comprehensive cover has its limits):
Excess in South African Insurance Policies: In addition to the basic excess, the standard amount payable on any claim, insurance providers can also charge an additional excess. Additional excess usually applies in special cases, like a policyholder claiming within 6 months of taking up cover and is paid over and above the basic excess.
Pronounced /ˈɛksɛs/
Definition: Specific risks, events, or damages that are not covered by an insurance policy. Exclusions clarify what is not claimable, preventing misunderstandings and ensuring policyholders are aware of their coverage limits.
Example(s):
Why Exclusions Matter: Exclusions help define the limits of an insurance policy, ensuring fairness and affordability for all policyholders. They also encourage responsible behaviour, such as safe driving and proper vehicle maintenance.
Exclusions (because even comprehensive cover has its limits):
Exclusions in South African Insurance Policies: Exclusions differ based on the insurance provider and the car insurance policy type (third-party versus comprehensive). Read the exclusions section of your policy to avoid surprises when claiming.
Pronounced /fjuːəl əˈsɪstəns/
Definition: A roadside assistance service that provides emergency fuel delivery when a policyholder runs out of petrol or diesel. Some insurance providers cover a limited amount of fuel for free, while others charge for the fuel but provide free delivery. Pineapple’s fuel assistance covers the call-out fee, but the cost of the fuel is the policyholder’s responsibility.
Example(s):
Why Fuel Assistance Matters: Getting stranded anywhere due to an empty tank can be inconvenient and unsafe. Pineapple’s fuel assistance ensures you can continue your journey without needing to find help on your own.
Exclusions (because even comprehensive cover has its limits):
Fuel Assistance in South African Insurance Policies: Many South African insurers offer fuel assistance as part of emergency roadside services. Some policies provide a set amount of free fuel, while others charge for the fuel but offer free delivery. Drivers should check their policy limits and service availability before relying on fuel assistance.
Pronounced /ɡreɪs ˈpɪəriəd/
Definition: A short extension after a missed insurance payment during which the policy remains active, allowing the policyholder to catch up on payments without losing coverage. The policy may lapse or be cancelled if payment is not made within this period.
Example(s):
Why a Grace Period Matters: It provides a valuable buffer, allowing policyholders to correct late payments while ensuring their policy remains active.
Exclusions (because even comprehensive cover has its limits):
Grace Period in South African Insurance Policies: Under South African consumer protection laws, policyholders typically have a 15-day grace period for insurance policies, allowing them to catch up on late payments. But it’s essential to check the policy wording for specific terms.
Definition: A fundamental principle in insurance where the insurance provider and the policyholder are expected to act honestly and transparently. You, as the policyholder, must provide truthful and complete information when applying for and maintaining a policy, while the insurance provider must honour valid claims fairly.
Example(s):
Why Good Faith Matters: Insurance is built on trust—without good faith, insurance providers might refuse to pay claims, and policyholders might misrepresent facts to get lower premiums. Acting in good faith ensures fair treatment for both parties and prevents fraud or unfair claim denials.
Exclusions (because even comprehensive cover has its limits):
Good Faith in South African Insurance Policies: South African insurance law follows the principle of “uberrima fides” (utmost good faith), meaning both parties must be honest and disclose all material facts. Failing to act in good faith can result in policy cancellations, claim disputes, or legal penalties.
Pronounced /həʊm ˈkɒntɛnts ɪnˈʃʊrəns/
Definition: A type of insurance that covers household items, personal belongings, and furniture against risks such as theft, fire, water damage, and natural disasters within the insured home. It protects everything inside the house that isn’t permanently attached to the structure.
Example(s):
Why Home Contents Insurance Matters: Replacing stolen or damaged household items can be expensive. Home contents insurance ensures that policyholders can repair or replace their belongings without financial strain.
Exclusions (because even comprehensive cover has its limits):
Home Contents Insurance in South African Insurance Policies: Most South African insurance providers allow policyholders to insure their household contents at replacement value. It’s crucial to regularly update the insured value to avoid underinsurance. Some policies offer all-risk add-ons, which cover valuable personal belongings outside the home as well.
Pronounced /ˈhaɪˌdʒækɪŋz/
Definition: The unlawful taking of a car from its driver, often involving violence. Hijackings are a serious risk in South Africa and are covered under comprehensive car insurance. Some policies also include trauma counselling benefits.
Example(s):
Why Hijacking Cover Matters:
South Africa has one of the highest hijacking rates in the world—according to SAPS (the South African Police Services), approximately 65 cars are hijacked daily. So, it’s essential to have proper insurance protection. Comprehensive coverage ensures financial reimbursement and often includes extras like tracking services and trauma support.
Exclusions (because even comprehensive cover has its limits):
Hijackings in South African Insurance Policies: Most South African comprehensive car insurance policies cover hijackings as part of theft cover. Some insurance providers offer hijack assistance services, including tracking, emergency response, and trauma counselling. Policyholders should check whether their policy requires a tracking device for full coverage.
Pronounced /ɪˈliːɡl juːs/
Definition: Any situation where a vehicle is used in a manner that violates the law, which can result in an insurance claim being rejected. This includes activities such as reckless driving, street racing, transporting illegal goods, or driving without a valid license.
Example(s):
Why Illegal Use Matters: Insurance only applies to legal activities. If a claim arises from an illegal act, an insurance provider has the right to deny coverage or even cancel the policy.
Exclusions (because even comprehensive cover has its limits):
Illegal Use in South African Insurance Policies: South African insurance providers strictly exclude claims that involve illegal activities, like drunk driving, reckless behaviour, and fraud. Policyholders must ensure their vehicle is used within legal and policy guidelines to avoid claim rejections.
Pronounced /ɪnˈdɛm.nɪ.ti/
Definition: A core insurance principle where an insurance provider restores a policyholder to their financial position before a loss—either by repairing, replacing, or reimbursing for damages. Insurance does not aim to provide a profit but rather to compensate for genuine losses.
Example(s):
Why indemnity matters: Insurance is meant to cover losses, not create financial gain. The indemnity principle ensures fairness by compensating only for the actual loss suffered.
Exclusions (because even comprehensive cover has its limits):
Indemnity in South African Insurance Policies: Most South African insurance policies apply the principle of indemnity, ensuring claims do not result in profit. Some policies allow for agreed-value cover, where an insured value is predetermined, reducing disputes over payouts.
Pronounced /ɪnˈʃʊərəbl ˈɪntrəst/
Definition: A legal requirement in insurance where the policyholder must have a financial stake in the insured item, meaning they would suffer a financial loss if it were damaged or stolen.
Example(s):
Why Insurable Interest Matters: Insurance cannot be taken out on items that don’t financially affect the policyholder—this prevents fraudulent claims and speculative insurance practices.
Exclusions (because even comprehensive cover has its limits):
Insurable Interest in South African Insurance Policies: South African law requires policyholders to have a direct financial stake in the insured asset. If a policyholder no longer owns the insured item, the policy must be updated to reflect new ownership, or claims could be denied.
Pronounced /ˌdʒʊərɪsˈdɪkʃən/
Definition: The legal authority or geographic area where an insurance policy is valid and where disputes or claims must be settled. Insurance policies specify which country’s laws apply and where cover is enforceable.
Example(s):
Why Jurisdiction Matters: Insurance coverage is not always worldwide. So, policyholders must check where their policy applies to avoid unexpected claim denials.
Exclusions (because even comprehensive cover has its limits):
Jurisdiction in South African Insurance Policies:
Most South African insurance policies specify South Africa as the primary jurisdiction, meaning claims and legal matters must be handled under local insurance laws. Some policies extend coverage to neighbouring countries, but only if declared in advance.
Pronounced /kiː rɪˈpleɪsm(ə)nt/
Definition: An insurance benefit that covers the cost of replacing lost, stolen, or damaged car keys, including key fobs and remote locking devices. Some policies also cover lock replacement and reprogramming for security reasons.
Example(s):
Why Key Replacement Matters: Modern car keys can be expensive to replace, especially with electronic transponders or smart entry systems. Having key replacement in your cover saves you from unexpectedly high costs.
Exclusions (because even comprehensive cover has its limits):
Key Replacement in South African Insurance Policies: Many South African insurers offer key replacement as an optional add-on. This can cover replacement, lock reprogramming, and security system resets if necessary. Some policies also provide assistance for retrieving locked-in keys.
Pronounced /læps/
Definition: A policy lapse occurs when an insurance policy becomes inactive or cancelled due to non-payment of premiums or failure to renew. Once a policy lapses, the policyholder no longer has coverage and must reapply for insurance, often at a higher rate.
Example(s):
Why a Lapse Matters: A lapsed policy means no insurance protection, leaving the policyholder financially vulnerable. Reinstating a lapsed policy may require a new application, underwriting, or higher premiums.
Exclusions (because even comprehensive cover has its limits):
Lapse in South African Insurance Policies: In South Africa, insurance providers typically offer a 7-15 day grace period before a policy officially lapses. If coverage lapses, the policyholder may need to reapply, and any past claims history could affect the new premium.
Pronounced /laɪˈæbɪləti/
Definition: Legal responsibility for damages, losses, or injuries caused to another person or their property. In insurance, liability cover protects the policyholder from having to personally pay for third-party claims.
Example(s):
Why Liability Matters: Without liability cover, you could pay out of pocket for damages caused to others, which can be financially devastating.
Exclusions (because even comprehensive cover has its limits):
Why Liability Matters: Without liability cover, you’ll likely pay out of pocket for damages caused to others, which can be financially devastating.
Liability in South African Insurance Policies: Most South African car insurance policies include third-party liability cover, which pays for damages to other vehicles or property. Home and business insurance policies also offer public liability cover for accidents involving guests or clients.
Pronounced /ˈlɪmɪt/
Definition: The maximum amount an insurance provider will pay for a claim under a specific type of coverage. Policy limits vary depending on the type of insurance, and claims exceeding the limit must be covered by the policyholder.
Example(s):
Why Limits Matter: Policyholders need to ensure their limits are high enough to cover potential losses. If a claim exceeds the policy limit, the remaining costs must be paid out of pocket.
Exclusions (because even comprehensive cover has its limits):
Limits in South African Insurance Policies: Most South African insurance providers set specific claim limits for different cover types. Policyholders can sometimes increase their limits by adjusting their premiums. It’s crucial to check the policy wording to avoid underinsurance.
Pronounced /məˈlɪʃəs ˈdamɪdʒ/
Definition: Intentional damage caused to a vehicle or property by vandalism, sabotage, or deliberate destruction. Unlike accidental damage, malicious damage is caused on purpose and may be covered under comprehensive insurance policies.
Example(s):
Why Malicious Damage Matters: Unlike accidental damage, malicious damage is caused deliberately, and repairing it can be costly. Having comprehensive cover ensures that repair costs are not left to the policyholder.
Exclusions (because even comprehensive cover has its limit):
Malicious Damage in South African Insurance Policies: Most comprehensive car insurance policies cover malicious damage, but claims often require a police case number. Damage caused by strikes, protests, or public disorder is typically covered under SASRIA (South African Special Risks Insurance Association) rather than standard insurance.
rding to confirm.
Pronounced /ˈmɑːrkɪt ˈvæljuː/
Definition: The estimated price a vehicle would sell for in the current market, considering factors like age, condition, mileage, and demand. Market value is used by insurers to determine claim payouts if a car is stolen or written off.
Example(s):
Why Market Value Matters: Some insurance payouts are based on the market value at the time of the claim, not the original purchase price. Knowing a car’s market value helps policyholders understand potential payouts and avoid underinsurance.
Exclusions (because even comprehensive cover has its limits):
Market Value in South African Insurance Policies:
Market Value – Based on current resale prices.
Retail Value – Based on the price a dealer would sell the same make and model for (often higher than market value).
Trade Value – The amount a dealership would offer for a trade-in (lower than market value).
Pronounced /ˈmeɪntənəns/
Definition: Regular upkeep and servicing required to keep a vehicle or property in good working condition. Insurance does not cover maintenance-related costs, as these are the responsibility of the policyholder.
Example(s):
Why Maintenance Matters: Proper maintenance ensures safety, reliability, and longevity. Neglecting maintenance can lead to denied insurance claims, as insurers do not cover preventable damage caused by lack of upkeep.
Exclusions (because even comprehensive cover has its limits):
Maintenance in South African Insurance Policies: South African insurance providers do not cover general maintenance costs, but some policies offer mechanical warranty add-ons for unexpected breakdowns. Regular servicing is required to keep warranty and insurance policies valid.
Pronounced /ˈnætʃərəl dɪˈzɑːstərz/
Definition: Uncontrollable natural events such as floods, hailstorms, wildfires, and earthquakes that can cause damage to vehicles and property. Comprehensive insurance typically covers damages caused by natural disasters, but policyholders should check specific exclusions.
Example(s):
Why Natural Disaster Cover Matters: Natural disasters can cause severe damage or total loss, often leaving policyholders with huge financial burdens. Having comprehensive insurance ensures protection against these unpredictable events.
Exclusions (because even comprehensive cover has its limits):
Natural Disasters in South African Insurance Policies: South Africa experiences severe hailstorms, floods, and wildfires in certain regions. Most comprehensive insurance policies cover natural disaster damage, but policyholders should confirm coverage limits and exclusions, especially if they live in high-risk areas.
Pronounced /ˈnɛɡlɪdʒəns/
Definition: Failure to take reasonable care, leading to damage, loss, or injury. If negligence contributes to an accident or loss, an insurer may reduce or deny a claim.
Example(s):
Why Negligence Matters: Insurance is designed to cover unforeseen risks, not preventable incidents. If a policyholder fails to act responsibly, they may be held partially or fully liable for the resulting damages.
Exclusions (because even comprehensive cover has its limits):
Negligence in South African Insurance Policies: South African insurance providers strictly assess negligence in claims. If a policyholder fails to take reasonable precautions, their claim may be rejected or partially paid out. Common negligence-related claim denials include leaving keys in the ignition, driving recklessly, or failing to secure a property properly.
Pronounced /ˈnɒmɪneɪtɪd ˈdraɪvər/
Definition: A person who is officially listed on an insurance policy as an authorised driver of the insured vehicle. The nominated driver is covered under the policy when driving the vehicle, but anyone else may not be.
Example(s):
Why Nominated Drivers Matter: Insurance providers calculate risk and premiums based on who regularly drives the vehicle. If an unlisted driver has an accident, the claim may be denied or result in a higher excess.
Exclusions (because even comprehensive cover has its limits):
Nominated Driver in South African Insurance Policies: South African insurance providers typically require policyholders to list all regular drivers. If someone other than the nominated driver is involved in an accident, the insurance provider may apply a higher excess or reject the claim entirely. Some policies allow occasional drivers, but with specific conditions.
Pronounced /ˈɒmbʊdzmən/
Definition: An independent, impartial authority that helps resolve disputes between policyholders and insurers. The National Financial Ombuds Scheme of South Africa (NFO) investigates complaints free of charge, ensuring fair outcomes when policyholders believe their insurer has treated them unfairly.
Example(s):
Why the Ombudsman Matters:
The Ombudsman protects consumers by ensuring insurers follow regulations and treat customers fairly. This gives policyholders an alternative dispute resolution process without needing expensive legal action.
Exclusions (because even comprehensive cover has its limits):
Ombudsman in South African Insurance Policies: The NFO helps South African consumers with disputes related to car, home, and business insurance. Policyholders can submit complaints online, by email, or by phone if they feel an insurance provider has acted unfairly.
Pronounced /ˈoʊpən ˈdraɪvər ˈpɒlɪsi/
Definition: A type of car insurance policy that allows any licensed driver to operate the insured vehicle with the owner’s permission—not just nominated drivers. This provides flexibility but often comes with a higher premium.
Example(s):
Why Open Driver Policies Matter: Open driver policies provide convenience and flexibility, ensuring coverage regardless of who is behind the wheel (as long as they have a valid South African driver’s license, i.e., they are legally allowed to drive).
Exclusions (because even comprehensive cover has its limits):
Open Driver Policies in South African Insurance: Most South African insurance providers require nominated drivers, but some offer open driver policies for businesses or families who share a vehicle. However, these policies may come with higher premiums or special conditions, such as an increased excess for unnamed drivers.
Pronounced /ˈoʊvər ɪnˈʃʊərd/
Definition:
A situation where the insured value of an item is higher than its actual replacement value, leading to unnecessarily high premiums without increasing the potential payout in a claim.
Example(s):
Why Over Insurance Matters:
Over-insuring does not result in a bigger payout—insurers only pay up to the actual value of the lost or damaged item. This means policyholders are paying extra for no additional benefit.
Exclusions (because not all high insurance amounts are unnecessary):
Over Insurance in South African Insurance Policies:
South African insurers only pay out the actual value of a car or item, even if it’s insured for more. Policyholders should review their cover regularly to ensure they are correctly insured and not overpaying on premiums.
Pronounced /ˈpɒlɪsi/
Definition:
A policy is a legal contract between an insurance provider and a policyholder outlining the terms, conditions, cover, exclusions, and premiums of an insurance agreement. The policy specifies what is covered, how claims are processed, and the obligations of both parties.
Example(s):
Why a policy matters:
A policy serves as proof of insurance, ensuring both the insurer and policyholder understand their rights and responsibilities.
Exclusions (because even comprehensive cover has its limit):
Policy in South African Insurance:
South African insurance policies must comply with legal regulations, and policyholders are encouraged to read their policy documents carefully to understand their coverage and any exclusions.
Pronounced /ˈpɒlɪsiˌhəʊldər/
Definition:
The individual or entity that owns an insurance policy and is responsible for paying premiums, following policy terms, and filing claims when needed.
Example(s):
Why Policyholders Matter:
Only the policyholder has the legal right to make changes, request claims, or cancel the policy. Other drivers or beneficiaries may be covered but cannot make major policy decisions.
Exclusions (because even comprehensive cover has its limits):
Policyholders in South African Insurance:
Policyholders are responsible for disclosing accurate information when applying for insurance. Misrepresentation can lead to claim rejections or policy cancellations.
Pronounced /ˈpɒlɪsi rɪˈnjuːəl/
Definition:
The process of extending an insurance policy for another term, usually on a monthly or annual basis. Renewals may include premium adjustments based on claims history, inflation, or risk profile changes.
Example(s):
Why policy renewal matters:
Insurance policies need to be active and up to date to remain valid.
Exclusions (because even comprehensive cover has its limits):
Policy Renewal in South African Insurance:
South African insurers typically notify policyholders in advance of renewal terms, including any premium adjustments or changes in cover. Policyholders should check their policy before renewal to ensure it meets their needs.
Pronounced /ˈpɔːrtəbl ˈaɪtəmz/
Definition:
Personal belongings that are regularly carried outside the home, such as laptops, cell phones, cameras, and jewellery. These items require all-risk insurance to ensure protection against loss, theft, or accidental damage anywhere in the world.
Example(s):
Why portable items cover matters:
Standard home contents insurance only covers items inside the house. Portable items cover ensures valuable belongings are protected even when taken outside.
Exclusions (because even comprehensive cover has its limits):
Portable Items in South African Insurance:
South African insurance providers allow policyholders to list specific high-value items under all-risk cover. Some policies also provide unspecified portable cover, with a set limit per item.
Pronounced /ˈpriː ɪnˌspɛkʃən/
Definition:
An assessment conducted by an insurance provider before issuing a policy to document the current condition of a vehicle and confirm any existing damage. This helps prevent fraudulent claims and ensures accurate cover.
Example(s):
Why Pre-Inspection Matters:
It protects both the insurance provider and the policyholder by ensuring that claims only cover new damage, not pre-existing issues.
Exclusions (because even comprehensive cover has its limits):
Pre-Inspection in South African Insurance:
South African insurers often require pre-inspection photos or in-person assessments before issuing comprehensive car insurance. Some policies also require pre-inspection after policy lapses or major repairs.
Pronounced /ˈpriːmiəm/
Definition:
Premiums are the amount a policyholder pays to an insurance provider in exchange for coverage. They can be monthly or annual, and their cost depends on factors like risk profile, claims history, and type of cover.
Example(s):
Why Premiums Matter:
Premiums determine the affordability of insurance and reflect the level of risk an insurer takes on.
Exclusions (because even comprehensive cover has its limits):
Premiums in South African Insurance:
South African insurance providers calculate premiums based on driver history, vehicle type, location, and security measures. Some insurers offer discounts for low-risk drivers or multiple policies.
Pronounced /prəʊ ˈrɑːtə/
Definition:
A method of calculating insurance premiums or refunds based on the actual period of coverage rather than a full billing cycle.
Example(s):
Why Pro-Rata Billing Matters:
It ensures fair pricing for policyholders who start or cancel a policy partway through a billing cycle.
Exclusions (because even comprehensive cover has its limits):
Pro-Rata in South African Insurance:
South African insurers use pro-rata billing for policy changes, including mid-term cancellations, upgrades, or downgrades.
Pronounced /kwoʊt/
Definition:
An estimated cost of insurance coverage provided by an insurance provider based on a policyholder’s risk profile, vehicle details, and coverage needs. A quote outlines the premium, cover limits, excess amounts, and optional benefits before a policy is issued.
Example(s):
Why A Quote Matters:
A quote helps policyholders compare costs and benefits before committing to an insurance policy. It ensures they understand how much they will pay and what is covered.
Exclusions (because even comprehensive cover has its limits):
Quotes in South African Insurance:
South African insurance providers offer instant online quotes for car, home, and business insurance. Some may even provide discounted quotes for low-risk drivers or bundled policies. Policyholders should ensure all details are accurate to avoid pricing changes when finalising coverage.
Pronounced /ˈkwɒlɪfaɪɪŋ ɪˈvɛnt/
Definition:
A specific incident or change in circumstances that allows a policyholder to make a claim, adjust their policy, or qualify for certain benefits. Qualifying events determine when and how insurance coverage applies.
Example(s):
Why Qualifying Events Matter:
Insurance only applies to specific, covered events—if an event doesn’t qualify, a claim may be rejected.
Exclusions (because even comprehensive cover has its limits):
Qualifying Events in South African Insurance:
South African insurance providers require proof of qualifying events before approving claims. Policyholders should review their policies to understand which events are covered and what exclusions apply. Some policies also require police reports or supporting documents for claims related to theft, hijacking, or malicious damage.
Pronounced /rɪˈteɪl ˈvæljuː/
Definition:
The price a dealer would sell a similar make, model, and condition vehicle for at the time of a claim. Retail value is often higher than market value and is the most common basis for car insurance payouts in South Africa.
Example(s):
Why Retail Value Matters:
Retail value insurance provides higher payouts than market or trade value, helping policyholders replace their vehicle with a similar one from a dealer.
Exclusions (because even comprehensive cover has its limits):
Retail Value in South African Insurance:
Most South African insurance providers base comprehensive car insurance payouts on retail value, as it offers the closest match to what policyholders would pay for a replacement vehicle at a dealership. Some insurers allow policyholders to choose between retail, market, or trade value cover, depending on their needs.
Pronounced /rɪˈwɔːrdz/
Definition:
Incentives, cashback, or discounts offered by insurers to encourage safe driving, low claims, or policy loyalty. Rewards can be premium discounts, cashback bonuses, or partner benefits.
Example(s):
Why Rewards Matter:
Insurance rewards help reduce costs for responsible policyholders while encouraging safer driving and loyalty.
Exclusions (because even comprehensive cover has its limits):
Rewards in South African Insurance:
Many South African insurance providers offer cashback, discounts, or partner rewards for policyholders who drive safely, avoid claims, or remain loyal customers. Some programmes, like “Drive Less, Get Blessed,” reward policyholders for lower mileage or safer driving behaviour.
Pronounced /ˈsɑːzriə/
Definition:
SASRIA is a state-owned insurer in South Africa that provides cover for special risks such as riots, strikes, civil unrest, terrorism, and public disorder. It is an add-on to standard insurance policies and is not automatically included in regular cover.
Example(s):
Why SASRIA Matters:
Standard insurance policies do not cover damage caused by political or socially motivated actions. SASRIA protects businesses, homeowners, and drivers from financial loss caused by unrest or mass action.
Exclusions (because even comprehensive cover has its limits):
SASRIA in South African Insurance:
SASRIA was created to fill the gap left by standard insurance providers, ensuring that businesses and individuals are financially protected from damage caused by riots, strikes, and public disorder. Most insurers automatically offer SASRIA cover as an optional extra on car, home, and business insurance policies.
Pronounced /ʃɔːrt tɜːrm ɪnˈʃʊərəns/
Definition:
A type of insurance that provides cover for assets (such as cars, homes, and personal belongings) for a fixed period, typically month-to-month or annually. Unlike life insurance, which covers long-term risks, short-term insurance only applies while the policy is active.
Example(s):
Why Short-Term Insurance Matters:
Short-term insurance provides flexible coverage for everyday risks like accidents, theft, fire, and loss, allowing policyholders to adjust or cancel policies as needed.
Exclusions (because even comprehensive cover has its limits):
Short-Term Insurance in South African Insurance:
Short-term insurance is regulated under the Short-Term Insurance Act, ensuring consumer protection. It is widely used for car, home, business, and travel insurance, providing month-to-month or annual protection against unforeseen events.
Pronounced /ˌsʌbrəˈɡeɪʃən/
Definition:
The legal process where an insurance provider recovers claim costs from a third party responsible for the loss. If an insurer pays out a claim, they may take legal action on behalf of the policyholder to recover the costs from the at-fault party.
Example(s):
Why Subrogation Matters:
Subrogation helps insurance providers recover costs and keep premiums lower by ensuring that the responsible party pays for the damages instead of the policyholder’s insurer absorbing the full cost.
Exclusions (because even comprehensive cover has its limits):
Subrogation in South African Insurance:
South African insurers regularly use subrogation to recover claims, especially in car accidents, liability cases, and property damage disputes. Policyholders must cooperate with the insurer during the recovery process.
Pronounced /sʌm ɪnˈʃʊərd/
Definition:
The maximum amount an insurance provider will pay in the event of a claim. This amount is agreed upon when the policy is issued and should reflect the full replacement value of the insured asset.
Example(s):
Why the Sum Insured Matters:
If the sum insured is too low, the policyholder may not receive enough to replace their asset (underinsurance). If it’s too high, they may be overpaying on premiums.
Exclusions (because even comprehensive cover has its limits):
Sum Insured in South African Insurance:
South African insurance providers require policyholders to declare an accurate sum insured to avoid underinsurance penalties. Many insurers offer inflation-adjusted sum insured values to ensure that payouts keep up with rising costs.
Pronounced /tɜːrmz ənd kənˈdɪʃənz/
Definition:
The rules, requirements, and obligations that govern an insurance policy, detailing what is covered, exclusions, claims procedures, and the rights and responsibilities of both the insurer and policyholder.
Example(s):
Why Terms and Conditions Matter:
They define what the insurance provider will and won’t cover, helping policyholders avoid claim disputes and misunderstandings.
Exclusions (because even comprehensive cover has its limits):
Terms and Conditions in South African Insurance:
All South African insurance policies include terms and conditions that comply with the Short-Term Insurance Act and the Financial Advisory and Intermediary Services Act. Policyholders are encouraged to read their policy documents carefully before signing.
Pronounced /θɛft/
Definition:
The unlawful taking of a vehicle or insured item without the owner’s permission, resulting in financial loss. Comprehensive insurance policies cover theft, but claim approvals may depend on security measures such as tracking devices.
Example(s):
Why Theft Cover Matters:
Theft is a high-risk event, especially in South Africa, where vehicle and property theft rates are significant. Having the right cover ensures financial protection in case of loss.
Exclusions (because even comprehensive cover has its limits):
Theft in South African Insurance:
South African insurers strongly recommend security measures such as tracking devices, immobilisers, and anti-theft locks to reduce the risk of theft and qualify for lower premiums.
Pronounced /θɜːrd ˈpɑːrti ˈkʌvər/
Definition:
A type of car insurance that covers damage to another person’s vehicle or property but does not cover damage to the policyholder’s own car. It is the most basic form of car insurance and is often the cheapest.
Example(s):
Why Third-Party Cover Matters:
It prevents policyholders from paying out of pocket for damages caused to others and is often required for legal liability protection.
Exclusions (because even third-party liability cover has its limits):
Third-Party Cover in South African Insurance:
South African law does not require third-party insurance, but it is recommended for drivers who want financial protection against liability claims. Many insurance providers offer third-party only or third-party, fire, and theft policies.
Pronounced /ˈtoʊtəl lɒs/
Definition:
A situation where an insured vehicle is damaged beyond repair, or the cost of repairs exceeds the insured value, resulting in a full payout from the insurer. A stolen car that is not recovered is also classified as a total loss.
Example(s):
Why Total Loss Matters:
If a car is written off as a total loss, the policyholder receives a payout (often based on the retail or market value) to replace the vehicle.
Exclusions (because even comprehensive cover has its limits):
Total Loss in South African Insurance: Most insurers use assessors to determine total loss based on whether repair costs exceed a percentage of the insured value (often 60% to 70%). Some policies offer credit shortfall insurance to cover remaining loan amounts after a total loss.
Pronounced /treɪd ɪn ˈvæljuː/
Definition:
Trade-in value is the price a dealer is willing to pay for a used vehicle when trading it in for another car. It is usually lower than market or retail value because dealers need to resell the car at a profit.
Example(s):
Why Trade-In Value Matters:
It helps car owners estimate how much they will get when upgrading their vehicle, but it is not the best option for insurance payouts.
Exclusions (because even comprehensive cover has its limits):
Trade-in Value in South African Insurance:
Most South African insurance providers base car payouts on retail or market value, not trade-in value, because trade-in value is the lowest and does not accurately reflect replacement cost.
Pronounced /ˌtɛləˈmætɪks dɪˈvaɪs/
Definition:
A small electronic device installed in a vehicle that collects data on driving habits, speed, mileage, braking patterns, and location. Insurers use this data to adjust premiums, offer rewards, or assess claim disputes. Some telematics devices also function as tracking systems for stolen vehicles.
Example(s):
Why telematics devices matter:
They allow an insurance provider to personalise premiums based on real driving behaviour, rewarding safe drivers with lower costs. They can also assist in theft recovery and fraud prevention.
Exclusions (because even comprehensive cover has its limits):
Telematics Devices in South African Insurance:
Many South African insurance providers offer telematics-based policies, rewarding drivers with cashback, premium discounts, or additional benefits for responsible driving habits. These devices are also commonly used in fleet management and vehicle tracking services.
Pronounced /trænzˈjuːniən/
Definition:
A credit bureau and vehicle valuation provider in South Africa that tracks credit scores, vehicle values, and risk assessments for insurers, lenders, and businesses. Insurance providers use TransUnion to verify vehicle values, prevent fraud, and determine fair claim payouts.
Example(s):
Why TransUnion matters:
It provides independent, trusted data for vehicle pricing, creditworthiness, and insurance claims, ensuring fair payouts and risk management.
Exclusions (because TransUnion data isn’t always final or absolute):
TransUnion in South African Insurance:
Many South African insurance providers, banks, and vehicle dealerships rely on TransUnion data to determine insurance premiums, vehicle values, and credit risk. Some insurers also use TransUnion credit scores to assess policyholder risk profiles before issuing cover.
Pronounced /juːs/
Definition:
The declared purpose for which an insured vehicle is driven, such as private, business, or commercial use. The type of use affects insurance premiums and claim eligibility, as incorrect classification can lead to claim rejections.
Example(s):
Why Use matters:
Insurance providers typically assess risk based on how a vehicle is used—commercial and business vehicles face higher risks than personal-use cars, which is why premiums differ.
Exclusions (because even comprehensive cover has its limits):
Use in South African Insurance:
South African insurance providers usually categorise vehicle use into:
Policyholders must select the correct category to ensure valid claims and avoid unnecessary claim disputes.
Pronounced /ˈʌndərɪnˈʃʊərəns/
Definition:
A situation where an asset is insured for less than its actual replacement or market value, leading to reduced claim payouts. If an asset is underinsured, the policyholder may have to pay the difference in the event of a claim.
Example(s):
Why Underinsurance Matters:
If a policyholder is underinsured, their claim payout may be reduced in proportion to the shortfall, leaving them with unexpected financial burdens.
Exclusions (because even comprehensive cover has its limits):
Underinsurance in South African Insurance:
South African insurance providers use the “average clause” rule—if a policyholder insures an asset for less than 100% of its value, claims will be paid out at a reduced percentage. Policyholders should review and update their insured values regularly to avoid underinsurance.
Pronounced /ˈʌndərˌraɪtɪŋ/
Definition:
The process insurers use to assess risk and determine premiums before issuing a policy. Underwriting involves evaluating personal details, claims history, and asset values to decide coverage eligibility and pricing.
Example(s):
Why Underwriting Matters:
It ensures fair pricing based on actual risk, preventing fraud and keeping premiums affordable for responsible policyholders.
Exclusions (because even comprehensive cover has its limits):
Underwriting in South African Insurance:
South African insurance providers assess risk using credit scores, claims history, and vehicle or home location. Some policies offer risk-based discounts for low-risk policyholders, while high-risk individuals may pay higher premiums or need special conditions.
Pronounced /ˈvændəlɪzəm/
Definition:
Vandalism is the deliberate and malicious destruction or defacement of property, including vehicles. It is usually covered under comprehensive car insurance, but claim approval may require a police report.
Example(s):
Why vandalism cover matters:
Vandalism is unpredictable and costly, especially in high-risk areas. Without comprehensive cover, repairs must be paid for out of pocket.
Exclusions (because even comprehensive cover has its limits):
Vandalism in South African Insurance:
South African insurance providers typically cover vandalism under comprehensive policies, but policyholders must report the incident to the police and provide evidence (e.g., photos, witness reports) for claims to be processed.
Pronounced /ˈviːɪkl ˌæksəˈsɔriz/
Definition:
Non-standard add-ons or modifications fitted to a vehicle that enhances its functionality, aesthetics, or performance. These can be factory-fitted or aftermarket additions and may need to be separately insured to be covered in a claim.
Example(s):
Why Vehicle Accessories Matter:
Many insurers only cover factory-fitted accessories unless declared separately. Failing to list high-value accessories can result in lower claim payouts or exclusions.
Exclusions (because even comprehensive cover has its limits):
Vehicle Accessories in South African Insurance:
South African insurance providers distinguish between factory-fitted and aftermarket accessories. Policyholders should declare modifications to ensure full coverage, as undeclared accessories may not be included in claim payouts.
Pronounced /vɔɪd/
Definition:
When an insurance policy is cancelled or rendered invalid, the policyholder loses coverage and cannot make a claim. A policy may become void due to non-disclosure, fraud, non-payment, or policy violations.
Example(s):
Why void policies matter:
A voided policy means no coverage exists, leaving policyholders financially exposed. In some cases, insurers may refuse to issue future coverage due to the voided history.
Exclusions (because even comprehensive cover has its limits):
Void Policies in South African Insurance:
South African insurers strictly enforce non-disclosure and fraud rules. If a policy is voided, the insurance provider is not obligated to pay claims, and the policyholder may struggle to obtain new insurance due to a flagged record in the industry.
Pronounced /ˈwɒrənti/
Definition:
A written guarantee, issued to the purchaser of an article by its manufacturer, promising to repair or replace it if necessary within a specified period of 1 time. In insurance, a warranty is a promise by the policyholder to maintain certain conditions, which, if breached, may void the policy.
Example(s):
Why Warranties Matter:
A warranty guarantees that the vehicle will be free from certain defects in materials or craftsmanship for a particular time, usually for a certain number of kilometres driven. It protects you from unforeseen expenses, gives you confidence that your purchase is credible, and offers security and convenience.
Exclusions (because not all promises are warranties):
Warranties in South African Insurance:
South African insurance providers emphasise the importance of policy warranties. Breaching a warranty, especially those related to security or vehicle condition, can lead to claim denials or policy voids.
Pronounced /weər ən(d) teər/
Definition:
Wear and tear is damage that naturally and inevitably occurs due to normal wear or ageing. In insurance, wear and tear is generally excluded from coverage because it is considered a predictable and gradual process.
Example(s):
Why Wear and Tear Matters:
Understanding wear and tear helps policyholders distinguish between covered damages (accidental or sudden) and excluded damages (gradual and predictable).
Exclusions (because even comprehensive cover has its limits):
Wear and Tear in South African Insurance:
South African insurance providers consistently exclude wear and tear from standard policies. Policyholders are advised to maintain their vehicles and property to prevent issues arising from normal ageing.
Pronounced /ˈwɪndoʊ ən(d) ˈwɪndskriːn rɪˈpeər/
Definition:
The process of fixing damage to a vehicle’s windows or windscreen, such as chips, cracks, or breaks. Insurance policies may cover these repairs, often with specific terms and conditions.
Example(s):
Why Window and Windscreen Repair Matters:
Damaged windows and windscreens can impair visibility and compromise vehicle safety. Prompt repairs are essential to prevent further damage and ensure safe driving.
Exclusions (because even comprehensive cover has its limits):
Window and Windscreen Repair in South African Insurance:
South African insurance providers often offer specific coverage for window and windscreen repairs, sometimes with a separate excess or premium. Many insurers have preferred repair specialists that they work with.
Pronounced /raɪt ɒf/
Definition:
When an insurance company declares a vehicle a total loss, it is uneconomical to repair. This typically occurs when the repair costs exceed a certain percentage of the vehicle’s market value.
Example(s):
Why Write-Offs Matter:
A write-off results in the insurance company paying out the vehicle’s insured value minus any excess. This process can be stressful but is designed to provide financial compensation when repairs are not viable.
Exclusions (because even comprehensive cover has its limits):
Write-Offs in South African Insurance:
South African insurance providers follow industry standards for declaring vehicles a write-off. The percentage of market value used to determine a write-off may vary slightly between insurers.
We seem to have hit a snag; the letter “X” decided to take an extended vacation when it comes to standard insurance terminology.
Or, and this is just a theory, we have no X’s because Elon Musk owns them all now. They’re probably being used to name some new, super-secret, self-driving, hyper-insurance products launching to Mars.
In the meantime, feel free to use “X” to mark a spot on your calendar for when you’re going to treat yourself to a comprehensive car insurance quote. It takes just 90 secs.
Pronounced /jɪər, meɪk, ænd ˈmɒdəl/ (YMM)
Definition:
Year, Make, and Model (YMM) refers to the specific details of a vehicle, including the year it was manufactured, the brand or manufacturer (make), and the specific type of vehicle (model). Insurers use YMM to assess risk and calculate insurance premiums.
Example(s):
Why YMM matters:
Accurate YMM information is crucial for obtaining correct insurance quotes and ensuring proper coverage. Insurers use this data to determine the vehicle’s value, safety features, repair costs, and potential risk factors.
Exclusions (because even comprehensive cover has its limits):
YMM in South African Insurance:
South African insurance providers rely heavily on YMM to assess vehicle risk. They also consider factors like vehicle modifications and security features, but YMM remains a fundamental element in determining insurance premiums.
Pronounced /ˌaksɪˈdɛntl ˈdamɪdʒ/:
Definition: Unplanned events that cause unintended physical damage to the insured item.
Example(s):
Why Insuring Against Accidental Damage Matters: Life is unpredictable, as are accidents. Accidental damage coverage helps you avoid the ‘eish’ and ‘eina’ moments of life; it ensures you’re financially protected from sudden mishaps that aren’t caused by intentional damage.
Exclusions (because even comprehensive cover has its limit): It’s important to note that accidental damage cover may have certain exclusions, such as:
Accidental Damage In South African Insurance Policies: Accidental damage is typically covered under comprehensive car insurance policies. Comprehensive cover provides financial protection for a wide range of unexpected incidents that can damage a vehicle.
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Accordion Content
Pronounced /ˈzɪərəʊ ɪkˈses/
Definition:
An insurance policy or add-on that eliminates the policyholder’s excess (or deductible) payment in the event of a claim. This means the insurer covers the entire cost of covered damages without requiring the policyholder to pay any out-of-pocket amount.
Example(s):
Why Zero Excess Matters:
Zero excess provides maximum financial protection, offering peace of mind by eliminating unexpected out-of-pocket expenses during a claim. It simplifies the claims process and avoids financial strain in the event of an accident or damage.
Exclusions (because even comprehensive cover has its limits):
Zero Excess in South African Insurance:
South African insurance providers offer zero-excess options, often as add-ons or within premium comprehensive policies. Policyholders should carefully review the terms and conditions to understand the specific coverage and any limitations associated with zero excess.
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