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​Finding value is easier than you think

22 September 2020

​Finding value is easier than you think

While short-term insurance may be a grudge purchase for some, there could be hidden value in your personal or commercial policy. At a time when every rand counts, it is important to be aware of the more common value-added products, or VAPs, that you may already have included in your cover. After all, anything that helps make life easier, or less expensive, adds value to your life.

Be sure to add VAPs to the discussion list when you and your adviser next meet to review your policy, to ensure it gives you the protection you need.

Vehicle VAPs
While many of us are quick to opt for a higher excess in exchange for lower monthly premiums, you should always take care to be sure exactly what costs you will be liable for if you need to claim. Keep in mind that some insurers calculate the excess as a percentage of the claim amount. If the claim value is R300 000, for example, an excess of 5% of the claim would mean R15 000 will need to be paid upfront.

Excess Solutions reimburses your basic, theft and hijacking excess in the event of a claim, provided the vehicle is comprehensively covered. Any additional excesses will still apply, and the cover will follow the frequency you’ve selected for your policy to be in force (e.g. monthly or per annum).

Tyre Solutions provides cover for loss or damage from hard breaks, bursts or road inequalities, requiring repair or replacement of a tyre, including valves and balancing. This is only valid for comprehensive cover and if the tyres are purchased and fitted through an approved fitment centre. The vehicle must be privately owned and not used for commercial activities at all. Lastly, given that windscreen replacement costs are increasing and hence the excess applicable to your claim, there is a VAP that allows you to buy back your windscreen excess. This type of cover typically offers maximum liability and two claims per vehicle per year.

Just in case
We take the convenience of having a car for granted, but an accident can mean your car is kept at the repair shop for weeks. While you might consider asking friends for lifts, using Uber or even using public transport, making alternative arrangements can become cumbersome, especially if you have a family to transport too. Even if you have two cars in your family, having car hire can be beneficial, as the second car might not be available when you need it. If you have car hire on your policy, it can make the post-car accident process much simpler.

If you have an imported car, parts can take a while to arrive from abroad, so standard car hire may need an extension, depending on what car you drive.

Going the extra mile
Our roads aren’t always hazard free, and bumps and scratches can be common irritations that need not cost as much as you think to repair. The S.M.A.R.T Care Maintenance Plan protects your vehicle by providing cover for restoring paintwork damage due to general wear and tear.

Looking after you
PSG ASSIST is offered to personal and commercial policyholders on the PSG platform. Benefits include our smartphone application HELP 247, and Roadside Assist, bringing peace of mind as the service is open 24 hours a day, seven days a week. If your vehicle breaks down, or if you get a flat tyre, you will be able to get a reliable tow truck to help.

It’s never a good idea to drink and drive, and the Safe ‘n Sound service can help you be a responsible road user. This VAP includes six trips per year. Clients book their collection and the driver drives both you and your car home safely.

Household Assist or Advance Household Maintenance, as part of PSG ASSIST, can be useful if you need a locksmith or your geyser bursts, or if you have other home emergencies.

Cover against crime and injury can be included too
PSG Assault Medical and Trauma cover is provided for bodily injury sustained by violent, external and visible means, as a direct result of an assault necessitating medically indicated treatment, within three days of the incident. Medical benefits and legal assistance can also be included in a policy such as ID Assist. This product covers any fraudulent issues against your personal identity, which could prove useful in the current climate where cybercrime risks and financial fraud are rife.

You might also consider how you would feel if your domestic employee became injured on the job (imagine a fall down the stairs, for example). Specific domestic employee cover, such as the Domestic Compensation Plan, can make a difference if any medical emergencies arise.

The Premium Waiver VAP provides cover for death, permanent disability and retrenchment. The policy will cover your premium for a period of up to six months, or a maximum limit of R30 000. A waiting period of 26 weeks from inception of this cover applies.

Are you properly covered?
Insurance can help us cover shortfalls, but sometimes opting for lower premiums means we forgo benefits that could mean much more in the long run. You should always be clear what risks you are opting into, when agreeing to fund part of the costs yourself. Knowing about or adding on solutions to your policy, can make for a better experience. Knowledge is power, and preparation is never a waste.

Many of the benefits mentioned above may be appealing, but in some cases, these VAPs are only available for clients on the PSG Insure platform. Before assuming you are covered in your policy, check in with your adviser to be sure.

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