Busting SA’s popular car insurance myths

Johannesburg - True or false: If you have a bottle opener on your car's keyring, and you get into an accident, your insurance won't pay out.

It's false. If you've been drinking and you're over the legal blood alcohol limit, you could have a problem. But your insurance claims aren't affected by how you decorate your car keys, says Wynand van Vuuren, client experience partner at insurer King Price.

"There are a lot of weird myths and perceptions out there about insurance, and they often put people off from taking out insurance in the first place – which is a really bad move, considering that 7 out of every 10 cars on our roads aren't covered," says Van Vuuren.

So, while we're at it, let's just settle a few other popular insurance myths.

Myth: If your airbags deploy, your car will be written-off

Fact: Your airbags don't determine whether your car is repairable or not. That decision is made based purely on whether it's economically viable to repair the car.

"When assessing a claim, a range of factors is taken into consideration, including the availability of parts, your car's age and condition, and its retail value. But deployed airbags alone don't mean an automatic write-off," says Van Vuuren.

Myth: If your financed car is stolen or written-off then you don't have to pay back what's still owing on it

Fact: You remain responsible to the financer for the full financed amount, plus the applicable interest and any extra charges, whether or not you still have the car. This is why it's compulsory to have comprehensive insurance when you finance a car.

Myth: Having credit shortfall means you can buy a new car if yours is stolen or written-off

Fact: Credit shortfall cover pays what you still owe the financer after we've settled your claim. In other words, it covers the difference between the settlement amount at the time of your car being written-off or stolen, and what you still owe the financial institution for it. Also, credit shortfall isn't automatically included in your policy: You must ask your insurer to add credit shortfall cover, and an additional premium is payable for it. Some T's and C's will apply, but it's a small extra cost for big peace of mind!

Myth: If I don't drive that much, I don't need insurance

Fact: This is a popular, but financially damaging, myth. If someone jumps the stop sign at the end of your road and hits your car, will you be able to cover the financial loss? If not, you need insurance. And remember that insurance doesn't just protect you while you're on the road. Your car is still vulnerable to fire, theft, and weather-related risks while on your own property. Also, having insurance means you're covered for your liability towards other people's cars and property as a result of an accident. Keeping your car insured will ensure you always have peace of mind.

Myth: Anybody can drive my car at any time

Fact: When doing a quote, your insurer will always ask who the regular driver of a car is, and by this they mean who drives the car most often in any monthly period. When you tell your insurer you're the regular driver, they base your premium on your specific risk profile. So, if you tell your insurer that you're the regular driver but your student child drives the car most of the time, you've effectively supplied your insurer with incorrect information, and this could lead to a claim being rejected.

Bottom line: Make sure that your policy always reflects your correct and complete information so that there's no confusion or unnecessary delay if you need to claim. And don't listen to the myths. Get the facts and stay safe and covered.