4 Things You Probably Didn’t Know Were Covered by Car Insurance

These days, it often feels as if money doesn't go as far as it used to. You end up paying more for less a lot of the time, which isn't something anyone wants to do. Vehicle Insurance may seem like a payment you have to make each month that doesn’t actually give you anything back unless you’re in an accident.

However, there are several other benefits you might not know about. So before you start calculating the Car Insurance savings you could make by cancelling your policy, ensure you know about these Budget Car Insurance benefits.

Your Car Insurance is more versatile than you think

According to a Deloitte[1] report on South African consumer spending, South Africans face a shrinking discretionary income, prioritising essential expenses like groceries, housing and transport over expenses deemed less essential, such as education and healthcare. Car Insurance may be seen to fall into the latter category, but this is a mistake for many reasons.

Many people believe their insurance benefits are limited to placing claims and that if they don't have an accident or need a repair, they aren't actively benefiting from it. While it’s true that Auto Insurance provides you with a wider level of protection against out-of-pocket expenses in the event of an accident, other benefits can protect your finances and car that you may not have considered or known about.

Lesser known inclusions of Car Insurance

Here are a few areas of coverage your insurance can provide that you may not have known about before.

1. Property damage

Suppose you have comprehensive coverage and are involved in an accident where you accidentally damage someone's property. In that case, you'll be covered for this damage should the property owner take a third-party claim against you. For example, a person may collide with you while driving through a residential area, causing you to mount the curb and crash into someone's wall. Your Comprehensive Car Insurance policy will cover this type of damage. 

2. Bodily injury

You may have considered that you could get injured in an accident, but have you considered what would happen if a passenger was injured or you injured multiple people in an accident? Unfortunately, whether or not you're responsible for the accident may not prevent others from claiming against you. Comprehensive Car Insurance covers some medical expenses of passengers or drivers injured during a car accident or collision. For your own safety, we recommend taking out Personal Accident Cover, which will cover you should you be injured in a car crash. 

3. Breakdown assistance

In the chaos accompanying a car accident, it's easy to forget that you can't leave your car where it is, but you may not be able to drive it away either. This means it would need to be towed and taken to a safe storage facility to be kept there until you can move it to a repair centre. You may be unable to manage this if you're injured in the accident. However, your Comprehensive Vehicle Insurance and Third Party Fire and Theft Insurance can manage this with Road Assist. This includes Accident and Breakdown Assist. Call our Towline at 0860 10 41 11 for assistance. 

4. Some weather-related damage

We’ve seen many extreme and damaging weather events like flash floods and hail storms lately. If this should happen, you can rest assured that your Comprehensive Insurance can cover damage caused by extreme weather conditions, ensuring you don't have to worry about finding the money to repair a damaged windshield.

Things your standard Car Insurance policy doesn’t cover

While Budget Car Insurance has some unexpected inclusions, it also has exclusions you should be aware of. Here are some of them.

• Theft of contents inside your car

The items you store in your car must be insured separately with Portable Possessions Insurance. This will allow you to list what you keep on your person when you leave the house, sometimes also covering what you take with you in your car to work or for leisure activities.

• Custom parts, modifications and upgrades

 Modifying your car can involve changing its functionality and performance. This can lead to issues related to the Car Warranty. For this reason, many insurers do not cover, or only partially cover, cars that have been modified, customised or upgraded. Car owners are encouraged to inform their insurers if they’ve had any modifications made to their vehicle so that their claims do not get rejected. 

• Tyre and rim damage

It’s recommended that you take out separate Tyre and Rim Insurance if you drive for long distances on roads that have, for instance, a lot of potholes as your insurance may not cover this kind of damage. 

• Off-roading accidents

Accidents and damage related to off-roading are not covered by a standard Car Insurance policy. That’s why it’s recommended that you take out a specific policy if you enjoy this type of recreational activity. 

• Loss above your policy limits

A Car Insurance policy will have limits, which are influenced by various factors, including your coverage options and deductible choices. 

Get a Budget Insurance Car Insurance quote

The best way to know exactly what your insurance covers and doesn't cover is to choose the right policy and have someone talk you through your options. If your current insurer hasn't done this, the Budget Insurance team are ready to help. All you have to do is request a Budget Insurance quote today.

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Sources:

[1] Bizcommunity: Deloitte report finds SA consumers remain under pressure, most of budget goes to essentials

Disclaimer: The information in this article is provided for informational purposes only and should not be construed as financial, legal, or medical advice.