Streaming issues? Report here
Kieno Kammies 2019 1500 BW Kieno Kammies 2019 1500 BW
Today with Kieno Kammies
09:00 - 12:00
volume_up
volume_mute

Up Next: The Midday Report with Clement Manyathela
See full line-up
Today with Kieno Kammies
09:00 - 12:00

Claimed a few times of late? Consider another insurer before they dump you

26 September 2019 11:55 AM
It’s best to jump before you are pushed. It’s "catastrophic" if that happens, warns consumer journalist Wendy Knowler.

When it comes to short-term insurance policies - cars and household contents - if you’ve had a few claims recently, especially big ones, best you shop around for another insurer, suggests consumer journalist Wendy Knowler.

Your premiums and excess will be higher, but it beats being offloaded by your insurer because of what they call an “unfavourable loss ratio” (i.e. being dumped because you’re costing them too much considering your premiums; they consider you too high-risk).

It’s usually catastrophic if that happens, warns Knowler, because you must declare it to other insurers, meaning you’ll find it hard to get alternative cover.

If you do, it will be hellishly expensive.

It’s a huge problem being dumped by your insurer if you still owe money on your vehicle because credit providers always require financed vehicles to be comprehensively insured.

pixabay.com

A case in point

Knowler recently heard from a woman (Carol) whose family got ditched by her insurer, despite her pleas to rather increase her excess.

The loss-ratio spreadsheet indicated:

  • The family insured four cars and made eight claims totalling R140 000 between June 2016 and June 2019.

  • R36 000 of the total was for car hire while repairs were ongoing.

  • In one case, the rental car was a Mercedes Benz (10 days at R21 000, making up a third of the total claim – “totally excessive”).

Now no other company will insure us. We tried multiple ones via a top broker.

Carol

Carol also claims to have contacted all the repair shops involved to investigate what the insurer paid them.

She claims to have found that the insurer had reflected higher amounts on the spreadsheet, in some cases.

In the end, the insurer decided not to off-load the family but warned that their premiums are going up considerably.

Carol has since removed the car hire benefit from the policy.

We have a spare vehicle, so this is not necessary - doing without that ‘perk’ will off-set the premium rise and reduce our cost to the insurer per car claim.

Carol

Knowler’s advice:

  • Install an alarm in your home without your insurer having to ask you.

  • Maintain your insured buildings to avoid unnecessary claims in future.

  • Install a tracking device in your vehicle

  • Avoid parking in high-risk areas.

  • Ask your insurer how close you are to being off-loaded.

  • Don’t make small claims but inform your insurer of the incident so you can’t be accused of non-disclosure next time disaster strikes.

  • Seek alternative insurance before you are cancelled by your current insurer.

The Money Show’s Bruce Whitfield interviewed Knowler.

Listen to the interview in the audio below.

Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:

Subscribe to our Business Wrap Newsletter


26 September 2019 11:55 AM

Recommended

More from ConsumerTalk with Wendy Knowler

Loan lending

Payment holidays from the banks - can they be trusted?

25 March 2020 7:57 PM

Consumer Ninja, Wendy Knowler, on payment holidays from banks in which you get a break from interest and repayment of debt.

Share this:
Read More arrow_forward

consumer-talk-thumbnailjpg

When the coronavirus default tsunami hits, how will banks respond?

18 March 2020 8:03 PM

This edition of Consumer Corner looks at how lay-offs, closures and quarantine will impact people's income and ability to repay debt.

Share this:
Read More arrow_forward

bank-card-cash-money-walletjpeg

Covid-19 cancellations: A blanket 'no refunds' policy is against the law - Ombud

18 March 2020 6:12 PM

The Consumer Goods and Services Ombudsman says the Covid-19 pandemic should force suppliers to review their cancellation policies.

Share this:
Read More arrow_forward

insurance-balancejpeg

Sudden cancellation of life and illness policies - consumer warrior advice

11 March 2020 8:07 PM

Wendy Knowler, consumer Ninja, has a horror story about insurance policies being cancelled - by sms.

Share this:
Read More arrow_forward

girl-teenager-flight-plane-airline-flight-travel-tourism-youth-gap-year-123rf

Emirates dodges pressing questions about CT teen's harassment ordeal on flight

11 March 2020 3:23 PM

Emirates was asked detailed questions about their protocols following a case of attempted sexual assault on one of their flights last week.

Share this:
Read More arrow_forward

Man travel airport boarding pass passport #123rflifestyle 123rf

#COVID19: These airlines will let you change or cancel flight bookings for free

11 March 2020 2:23 PM

As the coronavirus continues to impact global travel, some international airlines are now offering free cancellation or flight changes.

Share this:
Read More arrow_forward

scam-fraud--

Telkom directory used to dupe small business owners

4 March 2020 7:54 PM

Hundreds of small businesses which fell prey to a phone directory listings scam, should relax and read here.

Share this:
Read More arrow_forward

luggage-holiday-travel-suitcase-airport-free-image-pixabay-933487-960-720webp

COVID-19: School tours, global conferences and family holidays up in the air

4 March 2020 4:29 PM

Consumers with international travel plans this year are facing high levels of anxiety as the coronavirus spreads across the world.

Share this:
Read More arrow_forward

online-shopper-laptop-digital-transaction-free-image-pexelsjpg

Wait - why did that debit order go off so early?

26 February 2020 8:26 PM

Wendy Knowler, consumer journalist, on Nedbank's early debit orders.

Share this:
Read More arrow_forward

singapore.jpg

Singapore Airlines refusing to refund SA man's flights amid coronavirus outbreak

26 February 2020 4:12 PM

A South African man has slammed airlines that refuse to issue penalty-free refunds in destinations hit by the coronavirus outbreak.

Share this:
Read More arrow_forward