Amid belt-tightening among consumers and a biting economy, insurers are coming up with innovative products that are far removed from the “package deal” short-term insurance of the past.
King Price spokesperson Wynand van Vuuren says packaged policies, typically offered by insurers, are not necessarily in the interest of consumers. Consumers should be able to structure their insurance according to the risks they face, he says.
As part of its focus on offering tailored risk cover, King Price has launched car warranty cover that pays for failed car-part repairs or replacements, as well as labour, regardless of where the car is insured, and even if it isn’t. Provisos are that the car must have a fully up-to-date service history and have less than 200,000km on the clock.
“If you’re driving a car that’s out of warranty, your car parts are steadily deteriorating. The big motive behind our new car warranty cover is to help you avoid unexpected costs when any of your car parts — including gearboxes, cambelts, turbos and management systems — fail,” Van Vuuren says. However, failing to maintain and service the car as per the manufacturer’s instructions will invalidate a claim.
There are four levels of cover available, depending on a car’s value and mileage. The premiums range from R99 to R250 a month, and the standard excess for each claim is R500.
King Price applies limits to each component types based on the value of the car, with slightly higher limits applied to more expensive vehicles.
For instance, the maximum that will be paid out on a gearbox is R25,000 if your vehicle is worth between R150,000 and R200,000, and you pay a monthly premium of R220. The maximum payout for a gearbox claim for a car worth less than R100,000 is R15,000, and the monthly premium for this car would be R99.
King Price will choose and pay claims to the repairer directly.
The product does not cover taxis or cars used for emergency services, law enforcement or towing.
Earlier this year, the company launched a motorbike insurance product that offers four levels of cover for every on-road biker’s needs and budget — including the ability for bikers to insure their bikes for an agreed value that does not depreciate...