We insure our clients against the risk of making a claim. With the:
increased number of motor vehicles on the road;
the fact that our road infrastructure has not been expanded or upgraded to deal with the extra traffic;
the driving inexperience of many new vehicle owners; and
increasing crime levels.

The risk of experiencing an accident, having your car stolen or being a victim of some or other crime is much higher than it used to be. Recent weather patterns have also resulted in an increased likelihood of storms, lightning or hail damage. The costs associated with these claims have increased.  So, even though you may not have claimed, the cost of your claims will be higher than a similar claim would have cost in the past.  Obviously if you have submitted a claim, your premium will naturally increase.

We update the value of your car on an annual basis. At a premium review stage, you receive the full benefit of the depreciation in value of your vehicle in terms of your premium calculation. The effect of this benefit is offset against the factors mentioned above as well as others. Were it not for this adjustment in the value, the increase you receive would be higher. The value of a vehicle is a factor only in the case of a stolen vehicle and accident claims where the vehicle is written off. These claim types account for less than 10% of all our motor claims. So, by far the vast majority of vehicle claims result in repairs which are not influenced by the fact that the vehicle has depreciated. In fact, the cost of repairing a vehicle this year will be substantially more than the cost at the same time last year, even though that vehicle may have depreciated by as much as 10-15%.

Repair costs have increased significantly due to a host of factors: The rand has depreciated against major currencies which impacts on the cost of spare parts. Cars these days include more and more advanced safety features and electronic gadgetry e.g. even base model vehicles are fitted with expensive airbags. Due to this, and as requested by vehicle manufacturers, panel beaters are required to purchase expensive equipment to ensure an acceptable level of repair quality. This investment in capital, and the related costs associated with training staff to use this new and advanced equipment translates into higher repair costs. In summary, the price of parts to replace safety features like airbags and electronic gadgetry is resulting in substantial increases in repair costs for even minor collisions. Many of the vehicles are imported meaning that spare parts have to be imported. There are numerous make and model options on our road today, and we have noticed that the availability of spare parts for these vehicles are limited. The average age of vehicles on our road has also dropped significantly, resulting in an impact on spare parts’ availability.

Who is at fault is not the issue. When you submit a claim there are various associated costs e.g. the cost of replacing or repairing the asset in question and the cost of administering the claim. Some may argue that they pay a premium to cover these costs. This is true, but by reducing the No-Claims discount following a claim, we are able to ensure that those who have not made a claim do not cross subsidise clients who have claimed. If a client claims for an accident where he/she was not at fault, we may or may not be successful in recovering the cost of the repairs. Even if we are successful in recovering the cost of the repairs, we are not able to recover the abovementioned claims administration costs. We are also not able to recover the costs associated in recovering the repair costs from the guilty party. Typically, if we are able to recover the repair costs from the guilty party, it is not the full repair cost. The vehicle accident law allows for a portion of blame to be ascribed to what we in everyday terms would consider the innocent party as it states that all road users have a duty to be on the look-out for and to take necessary steps to prevent collisions with other, possibly negligent drivers.

We hope that these questions and answers will provide you peace of mind in understanding the increase in our premiums a bit better!

A no-claims bonus is the discount given to drivers who have enjoyed continuous comprehensive cover without claiming during this period. An interruption of insurance of no less than 39 days will still qualify as continuous cover. Claims for window glass, car sound equipment and hail do not affect the no-claims bonus.

Submitting a claim affects your no claim bonus which is the discount that you enjoy for a claims free history. Your premium will therefore be adjusted after a claim.

After we inform you of our decision on a claim, we will allow you 90 days to make representations with regard to our decision. If we do not compensate you for a claim in full or any part of it, and you challenge our decision, you must serve legal process on us within 90 days after the time we allow for representations on disputed claims.

You can complain about your treatment to the Management of Trafalgar Financial Services. If the matter is still unresolved you can refer the case to:
The Short-term Insurance Ombudsman P.O. Box 32334 Braamfontein 2017 Tel: (011) 726 8900 Fax: (011) 726 5501.
We have the Ombudsman for Short Term Insurance a written undertaking that we will always abide by his formal rulings in respect of any matter referred to him by a client.
Financial Services Board P.O. Box 35655 Menlo Park 0102 Tel: (011) 428 8000 Fax: (011) 347 0221

Before deciding what your home contents are worth and how much you should insure them for, you must make sure that you know what your home contents are. An easy way to determine this is to imagine taking the roof off your home and turning it upside down, everything that falls out of your house constitutes home contents. You would then have to consider what it would cost to replace all these items at today’s values; this is how much you should insure your home contents for. We will provide you with inventory to assist in calculating the value of your household goods. You can also contact one of our specialist advisors who can assist you with any queries that you may have. Remember to reconsider this value every year because things keep getting more expensive and you generally also buy new goods every year. Ensure that you increase this value every year to provide for the increase in value of your assets and to provide for the new assets you have purchased.

Home contents cover provides cover for items stolen from or damaged in your home in other words theft as well as other perils e.g. Fire Lightning Explosions Malicious damage Impact with your home and outbuildings without direct to your home Falling trees (but not while they are being felled) Earthquakes (but not from mining operations) Storms Floods Bursting or overflowing of geysers, equipment or pipes Break-in and theft

Your circumstances may change from time to time e.g. your residential address or the make of a vehicle. You can change your contract to suit your new circumstances by phoning, faxing or emailing. New documentation reflecting the changed information will be sent to you.

Yes, this is known as double insurance and exists when two or more policies are taken out by an individual, for the same item and the total sum of the insured is more then what is required to replace the item.  Important to remember is that in such a case the insured cannot recover more than the total amount for the loss of this item.  However he/she can recover the “loss” amount from any one of the insurers. Once he/she has been indemnified, he/she cannot replicate the claim by expecting settlement from the other insurer.

At Trafalgar Financial Services, numerous things are taken into account including: The make and model of your motor vehicle. Where you live. Where your vehicle is kept at night. Who the driver of the vehicle is. What purpose your vehicle is used for. Your previous history claims. Because your premium is calculated inter alia on these facts it is very important that you are honest with your insurer when answering these and any other questions. If you are not sure about an answer rather tell the consultant this and get back to them later on. It is important not only to be honest when you take out insurance but in your dealings with your insurer or broker, including when you claim. Fraudulent claims costs the insurance industry millions every year and in turn results in increased premiums for you, the honest consumer. A person claiming for a leather jacket that they never had in the first place would be considered guilty of fraud.  Fraud can also lead to a criminal record as most insurers prosecute customers who have committed fraud.

Yes. We have found that married or co-habiting policy holders pose a lower risk than single or divorced policy holders do. This is possibly because single people go out more often, and therefore pose a greater risk as they are on the road and their residences are left empty, more often.

Yes. In the even of a claim, our claims consultants request you to provide us with two quotations to repair your vehicle. The motor body repairers are chosen by you.

You can usually insure your car for either retail or market value. Retail value is the amount that a dealer would be able to sell your car for. Trade value is what a dealer would pay for your car. Market value is the average of these two values. It is the amount that the car would be sold for in the market place. The market value is therefore a lower value than the retail value and you would obviously pay a lower premium for this cover. It would make no sense to insure your vehicle for more than either the retail or market values as you only will be paid out for the retail value of your car. These values obviously vary over time.