30 Sep, 2022

How Value Add-On Products Elevate Your Car Insurance

Car Insurance, as we know, doesn’t cover everything. What’s a good way of keeping your car in stellar condition for damage not covered by your insurance policy or for smaller claims you’d rather not have to make? The answer is value add-on products. You can get these from Auto & General. Discover more about these products, like Extended Vehicle Warranties or Tyre and Rim Insurance, and how these benefit your existing policy.

What is a value-add-on insurance product, and how does it work?

Did you know that regular Car Insurance does not cover things like mechanical and electrical failures? You could be left in the lurch if your vehicle suffers a mechanical or electrical failure. It’s in these kinds of situations that valued add-on products such as Extended Vehicle Warranty and Tyre and Rim Insurance come in. With value add-on products, the vehicle owner can keep their car running and in good condition. This is important because it improves your car’s resale value.

A value add-on product covers specific vehicle parts, and you can get these additional products provided you have an existing Car Insurance policy.

5 Types of value add-on products for Car Insurance

The type of value add-on product you get will depend on your individual needs, like your risk factors and budget.

1. Auto Top-Up

This is a finance shortfall insurance policy that is designed to protect car owners who have financed their vehicle through a bank from financial loss in the event of loss or theft. Imagine that you own a car that you are still paying off. Sadly, one night you park your car in an area known for car theft, and thieves steal your vehicle. You report the incident to the police and your insurers. The car is never recovered. What happens in this scenario? Your car insurer treats this situation the same way as a written-off car due to an accident. Since you still owe money on the car, your insurer pays the balance to your vehicle financier. The problem is that your Car Insurance policy may not cover the whole balance, meaning that you would still owe a certain amount. That’s where Auto Top-Up comes in handy and pays out the balance.

2. Scratch and Dent Insurance

Do you want to keep the body of your car in tip-top condition? Do you hate those little dings in your car, but you really don’t want to have to claim on your car insurance for such a small amount of damage? Well, now you can sort out those blemishes with Scratch and Dent Insurance. Scratch and Dent covers minor scratches, dents and chips often caused by road debris or the runaway shopping trolley.

3. Tyre and Rim Insurance

One of the biggest car threats on South Africa’s roads is potholes. The South African National Roads Agency SOC Ltd (Sanral)[1] has confirmed that potholes are a serious problem in our country. Meanwhile, how do you protect yourself financially in case of tyre and rim damage due to potholes and other road hazards? The solution is to get Tyre and Rim Insurance. It covers repairing or replacing your car tyres or rims up to a certain value. This means you won’t have to worry about tyre punctures or damage. The cost of repair or replacement and labour are covered.

4. Extended Vehicle Warranty

Most new vehicles are sold with manufacturers’ warranties, giving you peace of mind for a limited period. Once a vehicle warranty expires, you’re left exposed to possible expenses to repair your car in case of mechanical or electrical failures. Luckily, a value add-on called an Extended Vehicle Warranty protects you financially. A small investment helps keep your car on the road for longer. If your car experiences a mechanical or electrical issue, your Extended Vehicle Warranty will pay out for repair parts and labour. An Extended Vehicle Warranty policy is especially useful if you drive long distances. Your car works harder, leading to faster wear and tear of the parts.

5. Pre-Owned Vehicle Warranty

This policy provides cover for mechanical and electrical repairs and components for a second-hand car. The warranty cover will vary but usually covers major components like the engine, transmission and any electrical systems. That way, if your used car’s air-conditioning malfunctions in the middle of summer, you can rest assured that it will be repaired.

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