Archive for June 11th, 2011

How many times have you heard of someone complaining that their vehicle was written off and they were paid out much less by their insurance company, than what the vehicle was insured for?

Vehicle depreciation is a fact that we cannot dispute, but can you imagine stopping the depreciation of your 4×4 or SUV on your 4×4 insurance? It’s about to become a reality!

Let’s take a simple example:

• Our client insures her Nissan Xtrail for it’s retail value of R268’000.
• 2 years go by, and her Xtrail is written off after a nasty accident.
• Her insurer settles the claim based on the current retail value at the time of the claim, which is R212’000.
• So she get’s paid out R212’000, less her excess.
• Depreciation in value = R56’000

Now, let’s look at another example:

• Our same client insures her Nissan Xtrail for it’s retail value of R268’000. But this time she chose the Inception Value Policy*.
• 2 years go by, and her Xtrail is written off after a nasty accident.
• Because our client chose the the Inception Value Policy, her insured value remains R268’000 – the retail value of the Xtrail at the start of the policy.
• So, she get’s paid out R268’000, less her excess.
• Depreciation in value = R Nil

By selecting the Inception Value Policy, you can virtually stop the depreciation of your 4×4 or SUV, so that if you have a major claim, like a write-off, you are able to replace your 4×4 or SUV much easier.

We are proud to be promoting this new, innovative product** from 1 July 2011.

To get a quote on your 4×4 insurance, please click here to complete your details online.

Notes

* Inception Value Policy Terms and Conditions apply.
** Policy underwritten by Cross Country insurance Consultants, on behalf of Hollard Insurance.
The above example is for illustration purposes only.
Cover is always subject to the applicable policy wording.

Related articles

• Luxury vehicles ‘depreciate more’ (autonetinsurance.co.uk)
• My insurer won’t pay what my car’s worth following a write-off. (blogs.confused.com)