Read about an innovative car insurance product which, after growing for some time, provides great cover at affordable rates. If you want a different car insurance product compared to comprehensive car insurance, then this article is for you.
Any motorist buying car insurance needs to know that it is not a straightforward process. That is why we like to remind our readers that the following is just information and not advice. Professional advice on any car insurance product can be obtained by consulting a certified, financial advisor.
HOW DOES GROWING COVER WORK?
This innovative car insurance product grows each month, depending on what growth amount you have selected. There are 4 plans to choose from, where the monthly growth is either R500, R1,000, R2,000, or R4,000 per month. Cover grows until it has reached the car’s trade value. The amount of growth in cover partly or fully covers motor vehicle accidents, theft, hijacking, natural fire and natural disaster. However, the last two disasters only apply when there is a total loss of a vehicle.
WHAT DOES THIS GROWTH IN COVER ACHIEVE?
The growing cover is called the Growing Benefit Amount or GBA. This GBA increases every month. After an accident, the contribution of the GBA towards the repair of the car is calculated, depending on how many premiums have been paid.
The GBA contributes in the same way to theft and hijacking. Hail damage claims are limited to a maximum amount of R10,000.
WHAT BENEFIT DOES THIS GROWING COVER PLAN HAVE FOR THE MOTORIST?
There are several great benefits in stall for the motorist, which are explained further.
AFFORDABILITY
This insurance product takes care of those motorists who cannot afford or maintain traditional, and more expensive comprehensive car insurance.
EXCELLENT PREMIUMS
What makes the growing cover policy attractive is that the premiums are very low, and fixed for life. Thus, even though everything around you increases all the time due to amongst other things, inflation and VAT increases, the premiums don’t. Thus, with time, the premiums are actually becoming cheaper. Premiums start from as low as R165 pm, which is less than the cost of a meal for two at an average restaurant.
With traditional car insurance, premiums increase annually, especially after a claim was successfully submitted. This will never happen with this insurance policy.
NO EXCESS TO PAY
This great benefit only applies if the GBA exceeds the repair amount. It is bad enough experiencing the trauma of an accident, but having to suddenly find another R3000 excess to collect your car from a panel beater is something else.
With traditional car insurance products, motorists can lower their premiums, but at the expense of paying higher excesses.
OTHER BENEFITS
Third party insurance is included, providing cover of up to R500,000 per incident. The underwriting method is non-discriminatory, meaning that premiums are unaffected by the motorist’s gender, where he or she lives, or whether the car has a tracker or not.
Source: prime.co.za
Disclaimer:
This article was prepared by Eric Sandmann in his personal capacity. The views and opinions expressed in this article are the author’s own and do not reflect the views and opinions of Prime Meridian Direct (Pty) Ltd, FSP41040 (car insurance and life cover products). The views and opinions in the article should not be attributed to anyone but the author unless expressly stated. Nothing in this article should be relied upon as advice, this publication is presented for informational purposes only. No person should act or refrain from acting in reliance on any information found in this article, without first obtaining proper financial advice from the appropriate professional. The author makes no claims, promises or guarantees about the accuracy, or completeness, of any information linked from, referred to, or contained in this article. The author reserves the right, to edit and change the content of this article.