Here’s my gift-giving rule: Respect your current financial situation. – Suze Orman
Understanding Motor Vehicle Insurance: What Every Consumer Needs to Know
Motor vehicle insurance generally refers to insurance in terms of which an insurer assume the risk of loss that the insured might incur in relation to his motor vehicle or third parties. In return the insured pays a premium. Motor vehicle insurance cover can be very limited or very broad depending on the type of risk covered.
Motor vehicle insurance claims have of late become prevalent. Consumers are advised to ensure that they thoroughly understand the insurance terms.
One of the main issues that the consumers seem to face at the claim stage, emanates from the fact that the person who was driving the vehicle at the time of the accident is not the owner
of the vehicle.
Does It Matter Who Was Driving?
Yes. One of the main issues that the consumers seem to face at the claim stage, emanates from the fact that the person who was driving the vehicle at the time of the accident is not the owner
of the vehicle. What is important to know in this respect is the fact that a person driving a vehicle irrespective of whether such person is the owner of the vehicle or not, is bound by the terms applicable to the insured. The only exception is when the driver was not authorized to drive the vehicle.
of the vehicle. What is important to know in this respect is the fact that a person driving a vehicle irrespective of whether such person is the owner of the vehicle or not, is bound by the terms applicable to the insured. The only exception is when the driver was not authorized to drive the vehicle.
When Can an Insurer Repudiate a Claim?
For example an insurer may be entitled to repudiate a claim if:
• The person found to drive the vehicle was driving while exceeding the legal limit of the alcohol level although such person is not the owner of the vehicle or
• The person who was driving the vehicle makes a false statement in relation to the accident.
• The person found to drive the vehicle was driving while exceeding the legal limit of the alcohol level although such person is not the owner of the vehicle or
• The person who was driving the vehicle makes a false statement in relation to the accident.
What You Should Do as a Vehicle Owner
Motor vehicle insurance is a crucial financial tool, but it is only effective when both the insured and any authorised drivers understand and adhere to the policy conditions. Always ask your insurer or broker to explain the fine print and seek clarity on any limitations or exclusions in your cover.
Remember: Insurance is about managing risk—your knowledge is your best protection.