"The SAIA is of the view that the effects GMs exit would not have immediate effect to the insurance premiums. The cost of parts as dealers (suppliers of parts to the OEMs ) and independent part suppliers (suppliers of aftermarket parts ) have not indicated otherwise. Therefore it could be business as usual," SAIA said.But while there won't likely be immediate affects, there is a risk of effects in the future.
"A concern is where a situation arises that there is scarcity of motor parts, that could result to the delay in vehicle repairs which could increase costs of parts and costs of car hire and ultimately, resulting in most cars being declared uneconomical to repair," SAIA said. "This increased claims costs could have an effect on premiums."However SAIA urged customers to not panic, as insurers are required to honour all valid claims.
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