Car insurance providers are brilliant in their advertising campaigns. There is a constant battle in ingenuity and marketing skill to attract new customers and to take customers away from other insurers! Tom Cruise was correct when he said in Jerry Maguire “We live in a world of tough competitors!!”
Competition is good for the consumer who is trying to save money and who is willing to put in some effort in finding the correct car insurance for his specific needs. There is a multitude of products available – and offers range from the simplest to rather complex products – with all the bells and whistles, add-on’s, extras and the “that’s not alls”!! All this “extra cover” might not be necessary – and vehicle owners should be assisted in finding the correct information to make informed decisions.
Do you understand the car insurance product you are purchasing?
We have referred on the car insurance blog to the importance of understanding the terms and conditions of your car insurance policy. We have also warned against the fine print in insurance policies. Too many consumers believe that they are adequately covered – only to find during the claims process that they are not fully covered…
So who educates and advises on car insurance in South Africa?
In South Africa the financial services industry is regulated by the Financial Services Board. According to the Financial Services Board Amendment Act, 2000, the FSB will promote programmes and initiatives by financial institutions and bodies representing the financial services industry to inform and educate users and potential users of financial services and products.
What is the purpose of consumer education?
The purpose of consumer education is to promote knowledge of personal finance and the products available for existing users, and those who do not yet make use of such services. It is also to alert consumers of the risks involved in existing products and the dangers of dealing with unregistered product suppliers, intermediaries and other unscrupulous operators.
We believe that it is not only important to focus on the need for more insured cars on our roads – but also to assist vehicle owners in finding the correct products for their needs. On the Car Insurance Blog we will continue to offer an independent analysis of terms and conditions of car insurance policies and to advise on those aspects that require close scrutiny!
We would also like to invite vehicle owners to request more information or to inform us of topics that they would like to see discussed on the Blog. We have created a page on the Arrive Alive Road Safety Website titled “Car Insurance Advice / Education and Road Safety in South Africa”. This provides some insights to the efforts to assist vehicle owners in finding affordable insurance for their cars – and have more insured cars on our roads!
We would like to urge vehicle owners to also view: