Is your car insured for the right value?

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Thanks to inflated used car prices, thousands of South African motorists could be underinsured. This is the warning sounded by industry experts.

data, used car prices have risen by 10% in the past year. This is the result of a perfect storm of scenarios, including but not limited to the shortage ofThis increase is not specific to any brands. There has been a surge in prices throughout the second-hand car market. However, insurance premiums might not necessarily keep pace, placing motorists at risk if their cars are stolen or written off in an accident.South Africans need to reduce their spending like never before.

Wynand van Vuuren, client experience partner at King Price Insurance, insurance companies typically use three values: theGuide listing as published by TransUnion) The retail value is the highest of the threeThe market value falls between the retail and trade values,” he explained.“Live market data tells you how cars are trading now or in the recent past. These prices fluctuate depending on market conditions.

Guide, the retail value is R306,500, trade is R281,600, and market is R294,050. Again, this motorist would be hard-pressed to replace the car with a similar make and model in a similar condition.It is listed on AutoTrader for an average price of R145,589, with an average mileage of 92,257km and an average year of registration of 2015. And the insurance values? The retail value is R117,200

Van Vuuren said if your car is financed by a financial institution and you owe more than what your car is insured for, you should take out credit shortfall cover. This pays the amount you owe the financer after your insurer has settled your claim.

 

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