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

What Happens to My Claim if I Forgot to Pay the Car Insurance Premium?

Compare Guru
2016-08-18
We explain what your rights are if you miss one car insurance premium payment.
Unless you benefit from a period of grace, if you have not paid your car insurance premium, you are not covered for that month. We explain why below.  Times are tough economically and this can directly impact our car insurance premium payments. "There was a rise in the average number of outstanding debtors’ days, to 53.5 days in the second quarter, from 52.5 in the first quarter. "This shows an undeniable trend of rising financial strain," says Michelle Beetar, Managing Director of Experian South Africa. 728x90 petrol banner 2 car insurance claim In other words, sometimes, there simply isn't money in the bank account to pay our car insurance premiums and other debit orders. However, the Ombud for Short Term Insurance warns that where cover wasn't paid for a specific month, no cover is in place. If you then claim the car insurance company will have a strong case to reject the claim. But there is normally a period of grace allowed, depending on what it says in your policy booklet. They explain your rights and risks when you can't make a payment on your premium. claim if car insurance premium not paid

Consumers firstly need to understand the period of grace 

The Policyholder Protection Rules (‘PPR’) have introduced a safeguard to give consumers who fail to pay a premium a chance to pay. This is what you need to know about the rules for the period of grace.
  • The grace period may be 15 days or more after the agreed payment date but not less
  • Read your policy wording to see if the period of grace applies
  • The grace period applies from the second month after the policy starts
  • If the policy wording states that the premium may only be paid by debit order, the policy must explain how the premium must be paid during the grace period
  • However, where the policy wording does not set out the method of payment, then the insurer cannot refuse an offer by the consumer to pay the premium directly into the insurer’s bank account during the grace period
  • During the sales call, the period of grace will be explained.
  • If the insurer says they will double debit you in case of non-payment, the next month, it means that they are allowing one month's grace period
728x90 petrol banner 2 rejected car insurance claim

General principles where no grace period is allowed:

  • If no premium has been paid for a specific month, then there is no cover for that month
  • It is your responsibility to have sufficient funds to cover the deduction of the premium payment
  • The insurer does not need to notify you of a non-payment of the premium
  • Most policies contain an exclusion against cover if the consumer places a ‘stop payment’ on the premium
  • A stop payment is regarded as a cancellation of the policy by the consumer
  • Premiums are paid in advance, in other words, on the first day of June for cover to apply for the duration of June
If you are unsure, it is best to chat directly to your broker or insurance company. They will inform you about what you can do if you need to miss a payment. Need to compare car insurance companies? Let us help you!
CompareGuru Social TwitterCompareGuru Social FacebookCompareGuru Social LinkedIn

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

Email Address
Name
Sign Up