Write Off Insurance Value
For many there is nothing worse than having your motor vehicle written off by an insurer. Insurance companies in South Africa use at inception of your policy Trade, Market or Retail Value. Most direct insurance companies use the difference of trade and retail value.
With the state of the South African economy, the strong dollar and the weak demand for new vehicles. Most popular makes of 2nd hand vehicles are been sold above retail especially older models.
When it comes to write off you may not be able to replace your vehicle with the write off value especially when your excess is deducted from your claim.
So, how do insures get to the insured value? All vehicles are registered and updated monthly to the trade through Transunion. Vehicle Dealers, Banks and Insurance Companies use these values to determine the value of a motor vehicle for financing, suggested retail and insured value.
Make certain on your insurance policy what your vehicle is insured for ie. Retail or Trade or difference. Also keep in mind that replacing your vehicle for the insured value may not be possible if it is a high demand vehicle that sells for above retail value.
You can be paid out more if you select retail booster and select a lower excess on your vehicle.
If you need any assistance you have the right insurance cover in place contact:
stephenlep@discovery.co.za
