This is according to Nazeer Hoosen, executive director: PPS Short-Term Insurance, who says mechanical breakdowns or vehicle repairs are typically covered under a warranty or motor plan, which is separate and different to a motor insurance policy. "It is imperative for motor vehicle owners to educate themselves about exactly what their comprehensive motor insurance policy does cover in order to avoid financial strain."
Hoosen says comprehensive car insurance covers damage to or loss of the vehicle as a result of a peril. "However, each insurance policy is different with regards to what is considered an insured peril, so policyholders need to read and understand their policy or ask their broker to go through the document with them in full to better manage their risk and expectations."
He says if there is any doubt as to whether the repair is mechanical or accident-related, the owner must ensure a professional assessment of the cause of breakdown is conducted as soon as possible, invariably done by the insurer. "In a recent case, a vehicle owner's car broke down due to an oil leak which caused the engine to seize. It was later determined that the damage was caused by a rock which hit the sump while traveling on a gravel road. As a result, this claim was approved due to the cause being accidental damage."
This example proves the importance of determining the distinctions in the comprehensive policy. A mechanical breakdown caused as a result of an accident or insured peril (caught in a heavy storm or a mechanical failure caused by a rise in the water level on the road) is covered, says Hoosen. "However, vehicle maintenance repairs which ensure the car remains in a roadworthy condition and other mechanical breakdowns not related to accidents or perils are not."
Another common claim received which is not covered under comprehensive insurance is a spray paint before the vehicle is traded in, as it is not related to an accident or loss of the vehicle, says Hoosen.
It is also important for motorists to understand that every incident and resultant claim comes with a basic excess, says Hoosen. "Excess is the agreed amount that must be paid by the policyholder in the event of a claim, which can often increase following an increase in claim frequency. Therefore, when it comes to small little chips, scratches or dents that need to be repaired, sometimes it is better for motor vehicle owners not to claim for these, as the cost may actually be cheaper than the excess. Motorists must also realise that they cannot just group all their dents and scratches into one claim - each one attracts an individual excess so unless the dents or scratches are related to the same incident, they cannot be grouped together."
That said, it is vital that policyholders always disclose all accidents and incidents, regardless of whether they intend to claim or not, says Hoosen. "While it might be cheaper to get it repaired themselves, they are obliged to disclose the accident/incident to their insurer."
"Understanding their policies means motor vehicle owners can put plans in place for incidents not covered by the insurer. When in doubt, it is always best to consult the services of a financial advisor who can provide expert advice on what best suits the motor owner's needs," concludes Hoosen.
