Why does my premium increase when my car’s value decreases?

The value of your vehicle is only relevant when it is stolen or written-off and these types of claims only make up around 15% of all insurance costs.The value of a car depreciates over time, and a car with higher mileage is worth less than the same car with lower mileage. So why don’t car insurance premiums go down every year if the vehicle is worth less than it was a year ago?

“It doesn’t cost any less to replace the bumper on a one-year-old vehicle than it does on a brand new one,” explains Steyn. Another frequently asked question is how an insurer decides what your car is worth when it gets stolen or written off. These are all averages based on transactions on similar models at dealerships across the country. Your vehicle could have a list of extras or could be in much better condition than the average vehicle of the same age. As a last step, vehicle extras are taken into account as well as the mileage and condition of the vehicle to determine a fair value for your specific vehicle.Another common misconception is that car insurance covers bodily harm in case of an accident.

South Africa Latest News, South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Illegal dumping in Diepsloot gives rise to waste economy - The Mail & GuardianIllegal dumping in Diepsloot gives rise to waste economy - Nondumiso Sibiya has found value in collecting refuse and working with waste pickers
Source: mailandguardian - 🏆 2. / 92 Read more »

Findings from SA death reports during pandemic are surprising: expertDeath rates among young children have decreased, while the Northern Cape has the highest rate among provinces The ANC rejected the DA and the DA ran to the media to make it look like its them who rejected the ANC when we all know that Ramaphosa's job was to destroy ANC and go into a coalition with the DA
Source: SundayTimesZA - 🏆 47. / 51 Read more »

Findings from SA death reports during pandemic are surprising: expertDeath rates among young children have decreased, while the Northern Cape has the highest rate among provinces
Source: TimesLIVE - 🏆 28. / 59 Read more »

Re-analysis of ivermectin: When shaky science was removed, its Covid-19 benefits 'decreased' | Health24Researchers re-evaluated studies on ivermectin for Covid-19 and found that when potential bias and medical fraud were removed, the drug had no significant benefit. | zakiyahebrahim Health24com
Source: News24 - 🏆 4. / 80 Read more »

Another week of load-shedding lies aheadEskom is blaming this week’s outages on generation capacity shortages and a decrease in Zambia’s power generation I'm happy to join those who are sharing the good news about shantelll_142 . I'm not persuading anyone to trade with her but i advise every investor to make the right choice with shantelll_142 i got my withdrawal safely without any interruption. Rather be totally open & honest with all of us....load shedding will be done every day for the next 15 years at least...there is NO quick fix... It's efrika it's what u get. Look north for a road map
Source: BDliveSA - 🏆 12. / 63 Read more »

Car doctor: Choices that are fit for purpose | CitypressWhether your car is constant need of engine repairs or if you're wondering what kind of Honda to buy, our resident car doctor Justus Visagie, has the remedy. I never thought of meeting a legit bitcoin trader after been scammed many times at my age but the heavens sent TreytonAdam who guided me and help me make a living through crypto with my LUNO app , I recommend you to him now and also be a successful benefactor Honda should consider making the Jazz/Fit Crossover. It will sell i tell you. This car is bulletproof, specious, smooth and MADE IN JAPAN 🇯🇵💗 I entrusted Dennismayson9 with my money since I took rush of investing my money with he platform, and since then I've recovered all I lost to scams. Get in touch with Dennismayson9 and get a good mentorship and safe trading.
Source: City_Press - 🏆 7. / 72 Read more »