Covid-19 Outbreak SA Online Resource | More info
Insurance, Car Insurance, Funeral Cover, Life Insurance, Budget Insurance, Insurance Quotes, CompareGuru, South Africa.
Car and Household
Business
Life and Funeral
Car Insurance
Cover your vehicle
More Information
Get Quote
Pre-Owned Warranty
Cover the mechanical and electrical components of your vehicle
More Information
Get Quote
Extended Warranty
Cover the mechanical and electrical components of your vehicle
More Information
Get Quote
Scratch and Dent
Cover small dents, chips and scratches to your vehicle
More Information
Get Quote
Tyre and Rim
Cover damages to your wheels
More Information
Get Quote
Home Insurance
Cover your home and everything in it
More Information
Get Quote
Commercial Vehicle Insurance
Protect vehicles and drivers used in the day-to-day operation of your business against risks like financial loss, damage or personal injury.
More Information
Get Quote
Commercial Insurance
Provide cover against common risks and disruptions to business operations, such as theft, damage to property, employee / client injury and much more.
More Information
Get Quote
Directors and Officers Liability
Safeguard your business and key players from financial loss with the right policy.
More Information
Get Quote
Errors and Omissions Liability
Covers your business and employees against claims of negligence, poor workmanship, and more.
More Information
Get Quote
Life Insurance
Provide for your loved ones
More Information
Get Quote
Disability Insurance
Protect your paycheck
More Information
Get Quote
Serious Illness Insurance
Cover yourself for illnesses like cancer, Alzheimers, Parkinsons, strokes or heart attacks.
More Information
Get Quote
Funeral Cover
Protect your family financially and cover funeral expenses
More Information
Get Quote
Domestic Worker Insurance
Cover the person that looks after you and your family everyday
More Information
Get Quote
Menu
Home
About Us
Domestic Worker Cover Quote
Life Insurance Quote
Car Insurance Quote
Funeral Insurance Quote
Extended Warranty Quote
Pre-Owned Warranty Quote
Scratch and Dent Quote
Tyre And Rim Quote
News Room
Meet The Team
Careers
Providers
Insurance
Car Insurance
Building Insurance
Household Contents Insurance
Life Insurance
Disability Insurance
Serious Illness Insurance
Domestic Worker Insurance
All Risk Insurance
Funeral Insurance
MotorVAPS Cover
Commercial Insurance
Commercial Vehicle Insurance
Directors and Officers Liability Insurance
Errors and Omissions Liability Insurance
Support
Contact Us
Terms of Service
Privacy Policy
Disclosures
Client Letter
POPI Act
PIA Act
CIM Policy
Complaint Escalation
TCF Form

News Room

4 Ways To Avoid Being Ripped Off By Insurance Providers

Compare Guru
2017-04-05
Constantly afraid of being ripped off by insurance providers? Check out these four tips on how to avoid being left to fend for yourself.
After an accident, one of your first calls should be your car insurance provider. But what happens when the service you were expecting falls short and you end up feeling alone instead of supported by your insurance provider? While the majority of insurers are legitimate, there are a few scams that occur in the insurance industry.

Examples Of Insurance Scams

Low-Ball Offers

After writing off your vehicle, your policy may cover a replacement or the cash value of an equivalent car. Some car insurance providers try low-ball their cash offer by understating the car’s condition with imaginary complaints on the condition of your car. They may even estimate the value of your car by using a “comparable” vehicle (often with aggrandized mileage on the clock. Low mileage is a significant factor in a car’s value, but some insurance companies would rather ignore this fact in order to pay out less. Make sure you keep copies of all annual scheduled services to prove the current mileage of your written off vehicle.

High Rates, Low Deductibles

You know how they say cheaper is not always better? Insurance providers and brokers will often push you towards a policy with a low deductible. They back this up by saying you will receive a lower claim should an accident occur. What some insurance providers may fail to tell you is the worst drivers would be better off with a higher deductible.

Renewal Price Hikes

Insurance companies rely on your lack of know-how, which can sometimes be the case when it is time to renew your policy. An introductory offer that’s too good to be true may well be followed by a price-hike and little, to no explanation of what you’ve done to warrant an increase in your premiums.

Ghost Agents

If you receive an email, see an ad or get a phone call promising a deal that seems too good to be true, chances are it is. These unrealistic deals have often to be found to be offered by “ghost,” or fake, insurance agents. Before buying a policy, you should check out car insurers thoroughly. Contact the South African Insurance Association (SAIA) to enquire whether the insurer is licensed. If possible, do business with insurers you know you can trust. 

How To Avoid Being Ripped Off By Insurance Providers 

  1. Read the fine print before  you sign an insurance policy 
  2. Stay informed with all consumer information on industry trends and practices. 
  3. Make comparisons and do not just accept what your insurance provider offers you. You may be missing out on a fantastic deal with another provider. 
  4. Avoid policy sliding. Commission-hungry agents may attempt to slip additional policy coverage into your package without your knowledge or approval. This is called policy sliding and increases your premium rates significantly.

It's Your Right To Ask

Never allow an insurance broker or agent to sell you an insurance policy you do not properly understand. Don't allow an agent to bully or intimidate you. Ask as many questions as it takes to fully understand your policy.  It’s your money and you have a right to know how it is being spent.

Read More about complaining about your insurance company
CompareGuru Social TwitterCompareGuru Social FacebookCompareGuru Social LinkedIn

Sign up to our Newsletter now, and don’t miss a beat.

Email Address
Name
Sign Up