Though we hope to do things right when it comes to the insurance of our vehicles, there are a few things we need to avoid.
- Don't falsify a claim and don't inflate a claim - this is fraud. South African insurance fraud amounts to between R1billion and R3billion a year. The fraud also cause premium hikes of about 5% to 15% a year. Fraud is a criminal offence and it can make it difficult to get insurance in the future.
- Don't insure your child's car in your own name. Parents, in an attempt to reduce insurance costs, insure the car that is registered in their childs name, on their own policy however this is a fraudulant act. Even if the parents pay the premium, the car insurance must be in the child's name.
- Don't drive without a valid drivers license. A valid drivers license is requierd by law, for a person to drive a motor vehicle. If a policyholder gives someone without a valid drivers license permission to drive their insured vehicle, a claim will be refused if an accident should happen. Even if it seems like the unlicensed person will just drive for a short distance and that it will not do any harm, it is better to avoid the situation where anyone drives you car without a valid divers license.
- Don't drink and drive - this might seem obvious, but the insurance company will reject your claim if it is found you exceeded the legal blood alcohol level and that it caused the accident. Also, it is against the law to drive under the influence of alcohol.
- Don't take chances by skipping payment of a premium, pay them when they are due. If the insurance company sends you a notice that your policy will lapse on a certain date, you will not be covered after that date unless you renew your policy and pay the required premium.
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