Owning a car is an essential part of your life, giving you the ultimate convenience and freedom. Being a car owner, however, also brings with it inevitable, but often unexpected, expenses. No matter how cautiously you drive or how well you drive and care for your car, certain risks are simply unavoidable.
Potholes can damage your tyres, rogue shopping trolleys can dent your car, and engine components can fail without warning… The list is never-ending. While these incidents may not be your fault, they do require urgent attention. They can end up costing you thousands of Rands. This is where Value-Added Insurance Products (VAPs) step in, giving you financial protection against these unavoidable expenses that can leave a dent in your wallet.
What is the value of Value-Added Insurance Products?
Value-Added Insurance Products (VAPs) offer an essential layer of financial protection and protect your budget. Value-Added Insurance Products give you coverage for unexpected expenses that can arise with vehicle ownership. Here are some of the most common VAPs, and the value they give you:
Tyre and Rim Insurance
We all know the sinking feeling when a pothole suddenly seems to appear in the road, and we’ve no choice but to drive through it. A Tyre and Rim Insurance policy gives you cover for unexpected damage to your tyres. Potholes and other road hazards can cause significant damage to your tyres and rims, leading to expensive repairs or replacements.
Unfortunately, you can’t wait for these repairs. No tyres mean you can’t drive your car. This kind of damage requires immediate repair. You have to come up with the money NOW, or else your car is immobile. This is where Tyre and Rim Insurance comes in, covering the costs of repairing or replacing damaged tyres and rims, which can otherwise amount to thousands of rands.
Replacing a single tyre can cost you anywhere from R1,500 to R4,000 or more. Tyre and Rim Insurance saves you from unexpected and hefty expenses.
Scratch and Dent Insurance
Your car is susceptible to minor cosmetic damage on a daily basis. Scratch and Dent Insurance protects your wallet from the cost of repairing minor scratches and dents. Think of rogue shopping trolleys, and careless drivers swinging opening car doors. Even minor scratches and dents on your car can lead to costly repairs.
Your car is a reflection of you. You want your car to always be in the best condition. And, minor damage can reduce the resale value of your car. A minor scratch or dent on your car could set you back anything from R500 to R2,500 or more. Luckily, if you have Scratch and Dent Insurance, you don’t have to crack open your wallet to fix minor damage.
Extended Motor Warranty
An Extended Motor Warranty gives you extra coverage beyond the Warranty that comes with your car. It protects you against the cost of certain repairs and replacements after your original Warranty expires. Your Comprehensive Insurance doesn’t cover the risks around daily use of your car, like an engine failure, or gearbox malfunction. This means that you are left to pay for the bills out of your own pocket.
As your car gets older, your original Warranty will fall away. It’s common knowledge that as a car ages, it is more likely to have expensive breakdowns. Having a Motor Warranty saves from unexpected, costly, repairs.
The importance of Value-Added Insurance Products
Value-Added Insurance products complement your Comprehensive Car Insurance by covering the gaps that comprehensive policies do not address. While your Comprehensive Insurance will cover major damages, theft, third party cover, it often falls short when it comes to things like minor body damage, damaged tyres or mechanical breakdowns.
Minor damage vs major damage
Comprehensive Insurance typically covers bodywork damage from major accidents, but the excess fees can be prohibitively high. For minor repairs, the excess might be larger than the repair cost itself, which means you end up paying out of pocket. For example, if you have a minor repair that costs R1,500, but your excess is R5,000, you’ll have to cover the repair cost yourself. This is in stark contrast to a major accident where the repair costs might be R35,000, and you only need to pay the excess. Value-Added Insurance products help mitigate these smaller costs, protecting your monthly cash flow and providing financial relief.
Invest in Value-Added Insurance Products
Value-Added Insurance products are more than just add-ons. They’re investments in your financial security. These types of insurance policies prevent minor inconveniences from turning into major budget headaches. They also help you avoid dipping into your Comprehensive Insurance policy for smaller issues, potentially keeping your premiums lower in the long run.
A few extra rands invested upfront can save you a lot of money and stress down the road. With Value-Added Insurance, You can drive with confidence, knowing that you are covered against unexpected costs. Explore our range of Value-Added Insurance Products today.
