What are Value Added Products, and what makes them so valuable? Before we can answer that, we need to take a much closer look at that one crucial word; 

Value. 

We certainly see that word thrown around a lot these days, tagged and stapled and labelled and bestowed upon practically every single type of product imaginable. How do we determine real value, though, and in such times of economic uncertainty, no less? And how do we begin to assign real value to a product such as insurance, in particular? A product that, for the longest time, has been regarded by some with scepticism, considered a bit of a grudge-purchase, and often only appears toward the tail-end of the average South African’s growing list of priorities?

Let’s get concrete. In reality, value can be acquired in many forms, and the true worth of which is determined subjectively from person to person. The real value of insurance, then, depends entirely on what it can do for you, not just as a consumer, but as an individual. 

Trustworthy customer satisfaction indices, such as the annual SAcsi, continue to prove beyond all shadow of a doubt that South Africans are fully aware of the importance of insurance. We know that we’re very likely to need it at one point or another. Many people simply couldn’t afford to lose their vehicle, their home or the tools they use to earn a living. Many people couldn’t afford to fall critically ill. It’s precisely because we’re so woefully aware of these factors, however, that we have such high expectations. It’s precisely because of South Africa’s financial uncertainty that we, as consumers taking that leap of faith in a product we hope we may never need, but probably couldn’t do without, demand more bang for our buck.   

The real value of the right insurance, then, is not only derived from the financial security and peace of mind that it is able to provide, but also in the quality, the reliability, the ease of use and the affordability of the product. 

Brand loyalty suffered defenestration a long time ago, hurled head-long and unceremoniously through the nearest window. We want to know what you’ll be doing for us, how you’ll be improving our lives. What are you offering that others are not? Save the sales pitch, show us the value.

We have to be smarter with our money, and this is where Value Added Products (VAPs) enter the fray. 

So, from the top, what are Value Added Products, and what makes them so valuable?

We South Africans (already world-renowned for driving our cars until the wheels come off) have begun to hang onto our vehicles for even longer periods of time. We’re getting smarter with our money, trying to adapt our spending to this seismic economic landscape, thinking twice and thinking hard before trading our wheels in for something newer. 

So, how do we keep our vehicles in tiptop shape, retain a sizeable chunk of the resale value, and still stay within budget? How do we cover the cost of vital mechanical repairs or part replacements once our car grows old and our warranty falls away? 

And how about all the little things excluded from traditional insurance cover, or, as in the case of unavoidable cosmetic damage, when the cost of excess far outweighs the cost of the actual repairs? It simply wouldn’t be viable to submit a traditional claim for every scratch, every dent or every chip in the paint, but, these little things accumulate, and fast. It wouldn’t be financially sane to continue constant out-of-pocket repairs either. 

Value Added Products step in to fill these gaps. A product like Scratch and Dent Insurance allows you claim far more often, at only a fraction of the cost, to keep your vehicle looking brand new all year round. When you finally decide to sell, a well-cared-for car will undoubtedly fetch a far higher selling price. Tyre and Rim Cover, likewise, provides us with sorely-needed security in a world of potholes and sudden pavements. And as for an older vehicle, popular VAPs such as the Extended Warranty or Pre-Owned Motor Warranty cover the vehicle’s vital mechanical or electrical parts for much longer, and drastically improve its lifespan.

While Value Added Products such as these may be purchased and added to existing insurance policies (or even issued as stand-alone cover), the additional costs involved become almost minuscule when considering the long-term benefits, not to mention the included add-ons such as roadside assistance, emergency medical care, vehicle rental, and more. With so many innovative insurance providers competing for business, these benefits are not only varied, but plentiful, and the value is evident. 

In essence, these products are specifically designed to pick up the slack where traditional insurance cover falters. Cover all bases, protect against the inevitable, account for the unexpected, and more importantly, provide maximum value for our money.  

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