With about 66 cars hijacked a day, many insurers now insist that certain vehicles have tracking devices installed before granting cover.

Car hijackings have been on the rise since 2020. According to Tracker’s latest Vehicle Crime Index, hijackings accounted for 55% of all vehicle crime incidents.

The latest SAPS crime statistics show there were 5 973 carjackings in the fourth quarter of 2023.

“This equates to about 66 cars being hijacked per day, which represents an increase of 34% over pre-pandemic levels,” says Marius Kemp, head of Personal Lines Insurance at Santam.

Gauteng is the worst region in South Africa for this type of crime. Of the almost 6 000 cars hijacked in the fourth quarter of 2023, half (3 010, or 50.4%) were from Gauteng. The Western Cape and KwaZulu-Natal were the next worst-hit provinces, at about 14% each.

“These statistics are only for hijackings, involving some sort of violence or coercion against the driver. Total vehicle thefts are around 10 000 per quarter, or about 40 000 annually,” Kemp says.

A hijacking trend highlighted in the 2022/23 Santam Insurance Barometer Report showed there has been a shift from older, low-value vehicles with limited security features to more expensive double cabs and SUVs.

“The hi-tech features on newer, higher-end cars often aren’t the deterrent one would think. For example, cars with keyless entry have become specific targets for criminals, who are able to intercept the signal coming from the driver’s remote,” Kemp says.

Facing a post-pandemic spike in car theft claims, insurance companies, including Santam, have introduced mandatory hijacking and theft countermeasures.

Santam says these measures proved effective. The short-term insurer’s personal lines hijacking claims were down by 24% in the first half of 2023, and vehicle theft claims were down by 19%.

Kemp says having a tracking device won’t prevent a car from being stolen, but will, in most cases, ensure a rapid recovery. He adds that even if a vehicle owner isn’t compelled to by an insurer, consumers and businesses should consider the substantial benefits these devices offer.

Apart from the high chance of recovery, Santam lists the following benefits of installing a tracking device:

• Reduction in insurance premiums. “The reduction will depend on your risk profile, type of vehicle and where you live, but all other things being equal, a car owner with a tracking device will pay a lower premium each month than a car owner without one,” Kemp says. “In some cases, the monthly discount on the premium will be higher than the monthly cost of the device.”
• Less downtime. Quick recoveries mean that in many cases, consumers and businesses are not left stranded without transportation for long periods.
• Roadside assistance. The tracking subscription may include a roadside assistance service in the event of a breakdown, although insurers generally offer this service on vehicle policies whether there is a tracking device or not.
• Additional features and services. Depending on the option, the service may include app-based tracking in real time, a trip logbook and, for businesses, fleet management.

“The more South Africans can be proactive in thwarting criminals, the more we can bring down the crime levels in our country, and one way to do that is by installing a tracking device in your car,” Kemp states.

Source: Moonstone

Why young South Africans also need insurance

South Africans are unfortunately notoriously bad savers. A recent study showed that less than 30% of people save toward an emergency fund for when something unexpected – and costly – occurs. For young people specifically, who are still building up their financial means, not having a fall-back for when things go wrong could be seriously costly.

This is according to Marius Kemp, Head of Personal Lines Underwriting at leading insurer Santam, who says that National Youth Month presents a good opportunity to remind people about the value of insurance and the freedom it provides for peace of mind.

“Insurance is traditionally seen as a grudge purchase, particularly amongst 18- to 25-year-olds who are starting their exciting career and financial journeys”.

“Coupled with this, most South Africans do not have a ‘rainy day fund’ for emergencies. Typically, most young people who are still working on starting to build savings, would not have R20 000 to R100 000 (or more) saved up and waiting to cover the cost of vehicle damages following an accident or paying for another third-party vehicle, or to cover theft or damages to assets and movable items such as laptops and high-end mobile phones. Arguably, young people need insurance even more than more established adults with a nest egg”.

Kemp explains that young people need insurance in order to protect their assets, have protection from legal liability and to build an insurance profile as they are in the beginning journey of their lives.

“This is especially important because, in general, younger individuals are perceived as a slightly higher risk – depending on which phase of their lives they are in. Starting to build a good insurance profile early on will be beneficial – much like a good credit history. It may also help to bring down premiums in the longer term, which are typically higher amongst 18 to 25 year olds due to the higher risk profile.”

Speaking about factors that are considered when determining an individual’s risk profile, Kemp says that previous claims history is very important. He adds that specific client profile data such as age, location and security measures of the risk, size of insured assets in terms of value, and the type of insured items especially related to vehicles are all considered by insurers.

According to claims trends from Santam, young people primarily tend to claim for house contents, personal effects such as portable technological equipment (including cell phones and laptops) and vehicle claims.

“The frequency and severity of vehicle claims for young people (18 – 25) are much higher than older clients. We would suggest that young drivers take out products that help to promote good driver behaviour where they can monitor and strive to improve their day-to-day driving.”

To improve their risk profile and possibly bring down their monthly premiums Kemp suggests that young people:

• Opt for a voluntary excess to bring down premiums;
• Beef up home and general security to be better than the minimum required;
• Install a telematics device which can also help reduce the vehicle premiums;
• Keep claims to minimum by self-insuring the low value claims would result in a lower premium increase at renewal.

When comparing insurance policies from different insurers, Kemp urges young South Africans to ensure they are comparing apples with apples.

“Looking carefully at excess structure, type of cover provided, value added services, claim overturn ratio, and reputable claim paying record especially in terms of widespread catastrophes is critical when deciding on an insurer.”

He concludes that brokers have sound knowledge of the insurance environment – and the specific needs of young people.

“A good insurance broker will give good advice on insurance matters to help you secure a product that fits into your life and budget and – most importantly – gives you the freedom to seize life’s opportunities”.

Source: FA News

With fuel increases and the rise in the cost of living in almost every other area of life, many homeowners may be concerned about their finances. Photographer: Armand Hough / Independent Newspapers.

Households in South Africa seem to have no reprieve as they continue to face hard-hitting increases that impact their cost of living, including interest rates, electricity tariffs and rocketing food and fuel prices.

Earlier this month, South African motorists were hit hard at the petrol pumps once again by a significant fuel price increase of R1.21 cents per litre for both grades of fuel, 95 and 93 ULP and LRP.

With these increases and the rise in the cost of living in almost every other area of life, many homeowners may be concerned about their finances.

Given this impact, households may be looking for ways to cut down on expenditure to meet their monthly payment commitments.

One area you might be tempted to cut is home and car insurance but Dr Hardy Ncube from Standard Bank Insurance warns consumers to think twice before cancelling their insurance coverage as this may have far-reaching consequences and could lead to huge expenses in the long run.

Instead, he advises that people look at smarter, less risky ways to manage their expenses.According to Ncube, Standard Bank Insurance understands that South Africans are battling severe financial pressure.

Hip-hop is the most distracting music genre, with albums by artists Young Thug, Doja Cat, Future, Gunna, 2 Chainz and Metro Boomin scoring in the top 10 highest for distraction

Researchers ranked the tunes on criteria including loudness, beats per minute and how energetic the song is – which can affect driver focus – to get to the “distraction score”.
Image: Alessandro Cinque

Motorists wanting a smooth and safe commute are advised to steer clear of hip-hop and Afrobeat tracks, which have emerged as the most distracting music genres and can race your heartbeat faster than your odometer.

R&B and gospel tend to be the least distracting, according to research commissioned by Budget Insurance, analysing newly released Spotify Wrapped data on South Africa’s most streamed songs and artists of 2023.

Researchers ranked the tunes on criteria, including loudness, beats per minute and how energetic the song is — which can affect driver focus — to get to the “distraction score”.

Three of the most-streamed South African songs scored more than 70% on the distraction scale: Mthandeni SK’s Paris (79%)’, Dave’s Sprinter (72%) and Rema’s Calm Down (72%).

Young Thug’s ‘Business is Business’ could head the traffic distraction parade, making you question if you’re driving or competing in a rap battle.
Image: Supplied

Hip-hop and amapiano songs by Soa Mattrix, Gunna, Lil Durk, Lady Zamar, Drake, 21 Savage, Latinover Pounds and Kabza De Small also rank highly for distraction, “so these musical troublemakers could take your car for a wilder ride than you bargained for”, the study found.

Other songs not a good idea in rush-hour traffic include Young Thug’s Business is Business and Doja Cat’s Scarlet.

Kabza De Small’s Isimo brings amapiano to the list, “turning your commute into a dance-off on wheels,” the study found, while Future’s Wait For You may make you anything but patient with its beat. These artists’ albums have average distraction scores of more than 60.

The research found that Yahyuppiyah by Uncle Waffles has the lowest distraction score of 33.92%. The artist also scores a smooth ride with Peacock Revisit. 

De Mthuda’s Sgudi Snyc will sync with your ride as do home-grown gems Spirit Of Praise’s gospel hit Thath’Indawo and Kelvin Momo’s Sukakude.

Based on accident claims data for 2023, the safest drivers hail from the Northern Cape, Free State and Limpopo.

For cities, the best drivers are in Rustenburg, Centurion and Pietermaritzburg.

KwaZulu-Natal, Western Cape and Gauteng recorded the highest number of car crashes, with Johannesburg, Pretoria and Cape Town the cities with the least safe drivers.

There is a caveat though.

“When considering car accident trends over the past two years, the provinces that have seen the biggest percentage increases in number of claims were Mpumalanga (+31%), Western Cape (+22%) and Gauteng (+21%), with Centurion (+54%), Rustenburg (+39%) and Cape Town (+36%),” the insurer said.

East London, Rustenburg, Centurion and Pietermaritzburg have the lowest accident claims.
Image: Budget Insurance

Tips for driving like a ‘good South African’:

• Volume control: lower the beat and avoid a traffic jam in your mind. Loud music impairs your focus and prevents you picking up important traffic cues around you. So, turn down the volume and drive with clarity.
• Melodic mood booster: create a playlist or choose a radio station that uplifts your mood and encourages a relaxed mindset. R&B, gospel and amapiano are among the least distracting music genres.
• Calm commute: avoid raging symphonies or rock concerts. It’s not advisable to drive when you’re frustrated or angry. For example, AC/DC’s Thunderstruck hits 133bpm which can set your heart rate racing.
• The quiet drive: sometimes silence is golden. On occasion you should try to tune out entirely to ease the stress and enjoy a peaceful drive without music.
• Keep your eye on the prize: that means the road. Did you know South Africa has one of the highest road crash rates in the world with about 25% caused by cellphone use?

Source: TimesLIVE

• Escalating Costs: The article highlights the significant increase in expenses associated with car ownership in South Africa, surpassing initial purchase prices by 55%, due to rising fuel prices, insurance premiums, and maintenance costs.
• Economic Challenges: South African consumers face relentless economic challenges, including interest rate hikes, inflationary pressures, and escalating living costs, which further strain household budgets and necessitate careful financial planning.
• Budgeting Advice: With petrol prices surging, insurance premiums rising, and maintenance expenses escalating, consumers are advised to exercise caution in budgeting, leaving room for potential cost increases to ensure long-term financial sustainability.

In recent years, South African consumers have faced relentless economic challenges, with inflationary pressures and escalating living costs squeezing household budgets. The burden extends to car ownership, where the true expenses far surpass the initial purchase price. As petrol prices surge, the rand weakens, and inflation bites deeper, a sobering reality emerges: owning a car demands more than just monthly repayments.

A study conducted by Naked Insurance sheds light on the hidden costs of owning a vehicle, particularly in the South African context. According to their analysis, the total expenditure for maintaining a new car valued at approximately R350,000, including fuel, insurance, and maintenance, surpasses the typical monthly repayment by a staggering 55%. This revelation underscores the necessity for consumers to adopt a more comprehensive approach to budgeting, factoring in all associated expenses.

The financial landscape for South African consumers has been tumultuous, marked by interest rate hikes and persistent inflationary pressures. Despite belt-tightening measures, relief remains elusive, amplifying the financial strain on households across the nation. The relentless surge in petrol prices, soaring by over 47% since February 2021, exacerbates the financial burden, further compounded by electricity challenges and escalating food costs. As disposable income dwindles, meeting mortgage payments, car loans, and credit card obligations becomes increasingly challenging, prompting consumers to seek additional sources of income to service their debts.

In this economic climate, individuals are compelled to scrutinise their expenditure meticulously, with particular attention to the costs associated with vehicle ownership. Ernest North, co-founder of Naked Insurance, highlights the stark reality of escalating car ownership expenses over the past two years. TransUnion’s latest vehicle pricing index (VPI) corroborates this assertion, revealing an average loan size of approximately R359,000 for new cars in South Africa.

Delving into specifics, Naked Insurance examines the actual cost of owning a typical car, as defined by TransUnion, in South Africa as of February 2024. Their analysis focuses on financing a new VW Polo 1.0 TSI, priced at around R348,200. While cash payment remains an option for some, the majority resort to financing options, often accompanied by a cash deposit. A typical five-year repayment plan, with a 10% deposit and an interest rate of 13%, translates to a monthly payment of approximately R7,222.

However, the financial commitment doesn’t end there. Fuel expenses constitute a significant portion of the overall cost of ownership. Calculating an approximate petrol bill entails considering fuel consumption and monthly travel distance. With petrol prices hovering around R23 per litre, a car with a consumption rate of just below 20km per litre would incur approximately R1,150 for every 1,000 kilometres travelled. Yet, the volatility of petrol prices underscores the need for flexibility in budgeting to accommodate fluctuations.

Insurance is another non-negotiable expense, particularly for those securing loans for vehicle purchases. Comprehensive car insurance is typically mandatory, safeguarding against potential losses and liabilities. While premiums vary based on individual risk profiles, estimates suggest an average monthly premium of R970 for a VW Polo.

Furthermore, budgeting for repairs and maintenance is imperative to mitigate unforeseen expenses. Despite service plans, additional costs for consumables and major repairs must be considered. On average, maintenance expenses amount to roughly 2% of the car’s value annually, equating to approximately R6,900 for a car valued at R348,000. For vehicles without warranty coverage, additional budget allocation ranging from R7,500 to R15,000 annually is prudent to cover servicing and unexpected breakdowns.

Summing up the expenses, driving a modest car over 1,000 kilometres per month translates to annual costs exceeding R134,000. Over the five-year financing period, total expenses escalate to approximately R670,000. However, upon completion of the repayment term, the car’s residual value is estimated at around R165,000, resulting in a net cost of approximately R505,000 for ownership.

Ernest North advises consumers to exercise caution in budgeting, recommending a buffer to account for potential increases in petrol prices, insurance premiums, and maintenance costs. The accompanying table outlines the estimated monthly expenses for owning and driving a new VW Polo 1.0 TSI, providing valuable insights for South African consumers navigating the complex terrain of car ownership.

Expense Cost Car payment R7,222 Fuel R1,150 Insurance R970 Long-term maintenance (average per month) R575 Services & unforeseen maintenance R1,250 Average cost per month R11,167 Total after 60 months R670,020

In conclusion, the true cost of owning a car extends far beyond the initial purchase price, demanding meticulous budgeting and prudent financial management. As economic uncertainties persist, South African consumers must heed the insights provided and adopt a holistic approach to car ownership, ensuring long-term financial sustainability amidst challenging times.

Source: RateWeb

Peter Seepi instituted action against King Price for the payment of R300 000. His 2016 Mercedes-Benz C220 was allegedly written off following an accident on 21 August 2017. The replacement value of the vehicle was R450 000, and Seepi submitted that he sold the wreck for R150 000.

King Price repudiated Seepi’s claim because of the non-disclosure of material information at the inception of the agreement.

The Court’s judgment, which has handed down in December, also shows there was a dispute over whether Seepi’s vehicle had, in fact, been involved in an accident in August 2017.

But it was common cause that, during the sales call in June 2017, Seepi did not inform King Price of the following:

• On 20 June 2014, the windscreen of his vehicle was chipped after being hit by a stone. He instituted a claim with OUTsurance on 21 June, but he did not proceed with the claim.
• On 21 June 2014, a cyclist drove into his vehicle, and the left-side mirror glass popped out. He instituted a claim with OUTsurance on 23 June, but he did not proceed with the claim.

Seepi submitted that the incidents were “minor”, had occurred “years before” he took out the policy with King Price, and related to a different car.

He had not proceeded with the claims because the excess of R3 500 was too expensive. It cost him R200 to fix the chipped window and R500 to fix the side mirror.

Seepi testified he was under the impression that he had given King Price permission to check his credit record, during which the insurer should have discovered the previous incidents.

He contended there is a difference between a claim and a payout, and because he did not receive a payout, it was as if he did not claim.

No onus

Judge Mabaeng Lenyai said Seepi failed to prove the existence of any facts for an indemnity claim in terms of the insurance policy.

During cross-examination, Seepi was reminded that there was a dispute as to whether an accident had occurred and the damages and quantum he claimed.” Seepi did not respond to the issues in dispute and as a result no evidence was presented of the accident and the damages suffered.

“In my view, the plaintiff failed to prove facts necessary to bring his claim within the terms of the insurance contract and the defendant thus never attracted an onus. There was just no case for the defendant to meet,” Judge Lenyai said.

Repudiation based on non-disclosure

The judge said “the heart of this matter” was whether King Price rightfully repudiated the contract on the grounds of non-disclosure.

She referred to section 53(1) of the Short-term Insurance Act, which addresses misrepresentation and the failure to disclose material information. On the issue of non-disclosure, she referred to what the then Appellate Division held in the matter of Mutual and Federal Insurance Co Ltd v Oudtshoorn Municipality (1985):

“There is a duty on both insured and insurer to disclose to each other prior to the conclusion of the contract of insurance every fact relative and material to the risk (periculum risicum) or the assessment of the premium. This duty of disclosure relates to material facts of which the parties had actual knowledge, all constructive knowledge prior to conclusion of the contract of insurance. Breach of this duty of disclosure amounts to mala fides or fraud, entitling the aggrieved party to avoid the contract of insurance.”

Judge Lenyai said a party that relies on the non-disclosure of a fact by the other contracting party to repudiate a claim must prove that:

• the fact was not disclosed;
• the fact was within the knowledge of the other party;
• the fact was material – that is, a reasonable man in the position of the insured would have considered the non-disclosed fact as being reasonably relevant for a proper assessment of the risk and premium; and
• the non-disclosed fact caused the party to either enter the contract at all or on the agreed terms.

Justice Lenyai said Seepi’s concessions, in his admissions and during cross-examination, met the abovementioned criteria. This was “the end of the matter”, and King Price correctly repudiated the claim, she said.

Source: Moonstone

Founded in 1904, with headquarters in Paris, the association, better known as the Fédération Internationale de l’Automobile (FIA), is a non-profit making association that brings together 244 international motoring and sporting organisations from 146 countries on five continents. The FIA, through its affiliated clubs, is duly authorised by their governments as international driving permit issuing entities. Its mission is to assist FIA member clubs and associations with international travel and motor-related information on many countries around the world.

As reported on the association’s website, the FIA conducted thorough research on short-term insurance providers in South Africa, aiming to make choices simpler and ensure selections align with clients’ needs and budgets.

Here is what the association’s research found:

Top auto insurance providers in South Africa for 2024

• Outsurance took the lead in comprehensive coverage, offering a wide range of protection. Their policy covers theft, hijacking, accidents, natural disasters, and more. Notably, FIA said, Outsurance provides financial predictability with a fixed excess regardless of the claim’s severity. Safe drivers can also enjoy an exclusive OutBonus, a cashback reward after three claim-free years, adding extra value to their policies.
• Budget Insurance emerged as the top choice for cost-effectiveness, offering a range of attractive features. According to FIA, with some of the most competitive premiums in the market, Budget Insurance is the go-to option for those who are budget-conscious. The association stated that the variety of coverage options allowed policyholders to customise their plans to suit their specific needs and financial constraints. Additionally, the insurer stood out with a simple claims process, minimising stress.
• King Price Insurance earned recognition for its outstanding customer service. Described as having a personalised approach, the FIA said the insurer took the time to understand and meet individual insurance needs. It added that the presence of a professional and dedicated customer support team, available 24/7, ensured timely assistance for policyholders. Additionally, King Price stood out with efficient claims processing, promising stress-free handling and quick resolution.
• Discovery Insure emerged as the top choice for customisation, providing a range of notable features. With tailored plans that accommodate specific driving habits, lifestyle, and budget, Discovery allowed individuals to choose a plan that suits their unique needs, the FIA said. A standout feature was Discovery’s exclusive Vitality Drive programme, the FIA said, which offers increased benefits for safe driving and proper car maintenance. Moreover, the association said. policyholders can enjoy peace of mind with comprehensive coverage, including third-party liability, theft, and protection against damage from fire or natural disasters.
• MiWay was named the go-to choice for speedy claims processing, offering a range of key features. With a robust management system, MIWay ensured that claims are handled more efficiently compared to other providers, the FIA said. The insurer’s digital infrastructure, including a well-implemented claims portal, allowed for easy submission of claims anytime, streamlining the process for policyholders. The association added that MIWay’s customer-centric approach was evident in its highly qualified support team, “always ready to assist throughout the claims process, providing customers with peace of mind”.

Things to consider before choosing an auto insurance provider

At last count, the number of short-term insurance companies in South Africa offering car insurance, home and business insurance stood at 37.  The FIA compiled a list of key points to consider when selecting an auto insurance provider:

• Financial stability: ensure the chosen provider is financially stable to handle claims smoothly in case of an accident.
• Prices: carefully examine prices for different insurance packages. The most expensive product may not always provide the best coverage, and cheaper plans might lack critical coverage elements.
• Customer service: The provider’s customer service is crucial. Opt for a company that responds promptly and professionally to your inquiries and issues.
• Policy offerings: a variety of policy options allows you to find the perfect coverage for your specific needs.
• Claims process: investigate how the company handles claims. A provider with a quick and hassle-free claims process can save you a lot of stress in the long run.

“The key is to balance coverage and costs, ensuring you get value for your money and feel secure in your protection,” the FIA said.

Source: Moonstone

Solar has boomed in South Africa recently, and for good reason. Our prolonged electricity crisis has forced many households and offices to take charge and invest in alternative power solutions.

While we hope for smooth sailing every day, we can’t ignore the reality that, sometimes, unforeseen events arise. And we all know Murphy’s Law… Whether it is theft, floods, winds, hail, golf balls (or hail the size of golf balls), lighting, fire, or power surges – you will be remiss not to secure your investment.

There are many things to consider before installing solar. Here are a few important points:

• Reach out to your insurance broker about the best way to protect your investment.
• Ensure your roof structure can support the solar system.
• To ensure compliance with electrical regulations, the installation must be carried out by a certified electrician who will provide you with a Certificate of Compliance (CoC). Insurers may reject a claim if it is not installed by an accredited supplier.
• Solar Insurance is usually not a stand-alone product. It generally falls under your building insurance – depending on several factors, for example whether the system is fixed or not. So, make sure your solar panel system is covered under the right insurance policy to avoid a claim being rejected.
• If you live in a complex or estate, you will need permission from your body corporate for the solar installation as they will most likely be the policyholder. Additionally, as the owner, it is important to ensure that the body corporate has solar cover included, or that they increase the sum insured. This might affect your monthly levies.
• If you live in an area prone to severe weather, it’s always a good idea to double-check whether your current insurance policy covers these types of damages to your solar panels.
• Know what your excess will be on a solar claim.
• Read your policy wording carefully so that you know what is covered.

Ensuring you have the correct and sufficient insurance cover in place will give you peace of mind and protect your investment.

Take a friendly step and reach out to us – we’ll be happy to advise on your solar insurance.

Source: Voorpos