Car Insurance Security Explained

September 12 - Recently, the ombudsman for short term insurance, Brian Martin reported that a number of claims for car insurance payouts have been rejected on the basis that the cars did not have the proper security measures as demanded by the security policy.

The head of Personal Lines Underwriting for Santam Insurance, Christelle Fourie, has come out to explain the idea of security measures in a car insurance policy.

Fourie said that in order to ensure that you are fully covered, you should contact your insurance broker before you even pay for the car in order to find out what security measure requirements there are on the car and how much they will cost to install.

While it is the duty of the car insurance company to advise its customers about the security measures required (and in many cases, they will demand proof of installation before they will issue the policy), it is still the customer's responsibility to have the measures put in place. If not, the insurance company is totally legitimate in turning down future claims.

"A claim will be rejected in the event that there is a clear stipulation in the policy that the vehicle should be fitted with a particular security device or devices and the insured fails to comply," said Fourie. "However, this does not mean that all insured vehicles must be fitted with these devices. Much will depend upon the value of the vehicle, which is obviously a function of its make, model and age, as well as the specific requirements of the different insurance companies and certain personal facts such as the area where the insured lives."

Fourie said that bottom line of her advice would be to make sure to speak to a car insurance broker before purchasing any car in order to avoid unpleasant surprises or unexpected expenses in the long run.