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Read the WELCOME ALL BMWFANATICS post.
M2C Crash in Cape Town
- Thread starter Supermo
- Start date
I heard of a case ages ago where someone crashed his car within a few days of acquiring it. The insurance policy had a clause where it becomes active only after the first payment is received. The first payment had not been debited from his account yet... and he was stuck with the car.... Do you think there is any truth to this?
StrollingCoal
Active member
I'm not sure how all insurance companies work but usually you're required to make payment for the first installment before delivery of the vehicle...this was the case with all the cars I've bought.
If I may comment, last year i was involved in an accident within the first week of ownership, the car was written off and insurance coughed up and gap/shortfall cover paid up. I chose to use the same insurance company for my next purchase and surprisingly my premium was lower than before the accident.
I stand under correction but insurance companies are legally bound to pay out since you are insured from the moment you sign the contract (provided you are up to date with payments, etc.), obviously they look for every single loophole to avoid this and in my case I was fortunate.
If I may comment, last year i was involved in an accident within the first week of ownership, the car was written off and insurance coughed up and gap/shortfall cover paid up. I chose to use the same insurance company for my next purchase and surprisingly my premium was lower than before the accident.
I stand under correction but insurance companies are legally bound to pay out since you are insured from the moment you sign the contract (provided you are up to date with payments, etc.), obviously they look for every single loophole to avoid this and in my case I was fortunate.
WIDEOPN-X5
Well-known member
kilotango said:
Not always that simple.... If it is found that the traction control was switched off and he was hooning it the opposite may apply... Insurer walks away and the owner is left with the finance or if paid cash with the scrap value of the car...anyone remember our poster with the car park crash which was repudiated by Discovery Insure :fencelook:
zaleonardz
Well-known member
On a hire purchase agreement, or lease , it is a requirement to have a letter from the insurance company stating that the car is "ALREADY" covered before the deal is finalized. They cannot hand over the key until that letter is in place.
Therefore, even though no premium has been paid, the car is insured, again provided that it is subject to a financial agreement, cash deal all bets are oiff.
However, that said, the insurance is going to worm out of it by using the reckless driving scenario, and repudiate the claim.
If the speed of the impact, as recorded by the SRS module (airbag) is over and above the regulated road speed, bam, not going to happen. If traction control has been turned off at the time of the impact, also a variable recorded on the SRS....
Unless the driver can prove that he is not at fault due to eg.
1. oil on the road
2. malfunctioning traffic light
3. evasive maundering to avoid an accident
4. flock of pigeons attacking his front windscreen
The logical choice with this, the assumption of an inexperienced driver, or an inexperienced driver in THAT specific car configuration, testing the vehicle, you can only assume the obvious.
Reckless driving, unless he can prove otherwise.
Therefore, even though no premium has been paid, the car is insured, again provided that it is subject to a financial agreement, cash deal all bets are oiff.
However, that said, the insurance is going to worm out of it by using the reckless driving scenario, and repudiate the claim.
If the speed of the impact, as recorded by the SRS module (airbag) is over and above the regulated road speed, bam, not going to happen. If traction control has been turned off at the time of the impact, also a variable recorded on the SRS....
Unless the driver can prove that he is not at fault due to eg.
1. oil on the road
2. malfunctioning traffic light
3. evasive maundering to avoid an accident
4. flock of pigeons attacking his front windscreen
The logical choice with this, the assumption of an inexperienced driver, or an inexperienced driver in THAT specific car configuration, testing the vehicle, you can only assume the obvious.
Reckless driving, unless he can prove otherwise.
WIDEOPN-X5
Well-known member
RonCT said:
It is imperative to always have confirmation of cover before taking delivery of a vehicle. As far as I know if a vehicle is financed it will not be released by the dealership without the confirmation of cover letter.
With this in mind I think the case to which you refer above should have gone to the insurance ombudsman.
In the alternative to the above where the vehicle may be purchased outright (as was the case with my dad's last vehicle) then an email was sent to the insurer requesting "hold covered".
The simple fact is this. Without written confirmation that full cover is in place then assume that it isn't. These are words to live by iro ANY insurance that one takes out.
Can't emphasise this point enough. If you don't get written confirmation of cover as per your requirements for cover then assume you are uninsured and in the case of vehicles DO NOT TAKE DELIVERY.
The reverse is true also when trading in a vehicle. When I traded the X3 in on the Ranger the driver from Halfway Ford was literally waiting to drive the vehicle to Joburg. Apparently it was sold already. Two things then happened immediately. I removed my numberplates and license disc and told them to fit "garage plates". And I didn't let them leave the dealership until I had confirmation in writing from my insurer that the vehicle was removed from my policy.
Stay safe folks
Mc Member.
New member
In this instance from experience........insurance will be looking into every nook and cranny.
Theyll be double checking and rechecking.........all the while, payments for the car and insurance will be going off.
Theyll take at least three months to deal with their "investigations and processes".
Once concluded, they will either repudiate your claim based on some technicality, or they will settle the book/market value of the vehicle - whichever is lower.
Hopefully youve taken gap cover/credit shortfall protection - this will cover the difference between what the insurance pays the bank and what is owed in interest.
Trust me........its a really horrible time.
Similar thing happened to me years ago with my K6 GSX-R 1000 on the old Allandale bridge.
Theyll be double checking and rechecking.........all the while, payments for the car and insurance will be going off.
Theyll take at least three months to deal with their "investigations and processes".
Once concluded, they will either repudiate your claim based on some technicality, or they will settle the book/market value of the vehicle - whichever is lower.
Hopefully youve taken gap cover/credit shortfall protection - this will cover the difference between what the insurance pays the bank and what is owed in interest.
Trust me........its a really horrible time.
Similar thing happened to me years ago with my K6 GSX-R 1000 on the old Allandale bridge.
Mc Member. said:
thanks for this info. this is exactly what i wanted to find out.. because we have a slimy insurance company... and a shit driver who (probably) owes some big money on the new car he just wrote off.. and someone has to lose.
my money is on the driver coming short here based on your info
Mc Member.
New member
kilotango said:
As long as the driver has all the boxes ticked he/she will be ok.
However, the insurance company if in the above instance may turn around and "mark" the driver.
Further to this, IF the driver cites an animal crossing the road for instance.......they'd repudiate the claim for this.
All insurance companies are a necessary slimy evil sadly.
Recently I know of an Audi RS that was written off......driver cancelled insurance just a week earlier because he could not afford it..........I mean really? Lower your expectations and standard of living if this is the case Buddy.......
Anyway, flips the car 9 times......lucky to be alive.......still owes 68 months in payments. Cant understand why?:dunnoanymore:
Fordkoppie
///Member
zaleonardz said:
I recently had an issue with Brolink where they repudiated a claim based on "overreacting" of an evasive maneuver.
They always have something as a scapegoat
Mc Member.
New member
Fordkoppie said:
This point bothers me.............
Say for instance.....'Benji'....the loslappie boerboel decides he wants to go visit his skelmpie across the way and you happen to come down the same road at around 58 km/h.......
Now has anyone seen what happens when a moose gets hit by a car?
Has anyone seen what happens to the occupants of a car when a body of an animal comes through a windscreen? Right.....so how can some oke sitting behind a screen quickly minimizing his private email window as the boss is walking past have ANY IDEA as to what is the best recourse while youre taking a boerboel to the face or dodging said 'Benji' to stay alive?
zaleonardz
Well-known member
And this folks, is why you stick to the top 5, guys that do insurance,
Santam
Zurich
Hollard
Alex Forbes
Mutual and Federal
These are proper old school insurance companies, and while they will scrutinize a claim, their repudiation rate is far lower then these novelty insurers, with their bucks back, free tv if no claim crap.
Old school insurance companies employ assessors, not digital assessors done at a call center. They have drive in centers, you deal with people, not streamlined online processes.
At the end of the day, you want your insurance to cover you when something goes wrong, most of these novelty insurers actually incentivize their "assessors" in claim reductions. So they are paying people to dispute your claims.
The above commentary is made from the viewpoint of owning a panel beater for 4 years, and dealing with insurance slime daily.
Santam
Zurich
Hollard
Alex Forbes
Mutual and Federal
These are proper old school insurance companies, and while they will scrutinize a claim, their repudiation rate is far lower then these novelty insurers, with their bucks back, free tv if no claim crap.
Old school insurance companies employ assessors, not digital assessors done at a call center. They have drive in centers, you deal with people, not streamlined online processes.
At the end of the day, you want your insurance to cover you when something goes wrong, most of these novelty insurers actually incentivize their "assessors" in claim reductions. So they are paying people to dispute your claims.
The above commentary is made from the viewpoint of owning a panel beater for 4 years, and dealing with insurance slime daily.
Mc Member.
New member
Quad Pipe said:
Semi roll over with airbags deployed? Doubt it............
