Industry related News - FA News Article

We are asked often why car values decrease but the premiums increase or remain the same, herewith an explanation:

The price of repairing cars both in cost of parts and labour are getting more expensive each year, so much so now in SA that it is unbelieveable how many cars are just simply written off because of the cost of repairs, storing fees charged by panelbeaters, car hire costs involved for those who have it on their polices as well as tow in costs and Assessor fees.  Thus the company do increase NCB’s (no claim bonusses) every year up to a maximum and the NCB discount thus creates a premium discount as does the lower retail value of the car but on the other side the rate increase to combat the above costs again creates a premium increase, we are now at a time where the latter overtook the discount for a NCB or value amendments.   I find it  with all the companies we work with.  It is unbelieveable how expensive vehicle repairs have become in SA and I think the future stance of companies are going to be to own their own panelbeater shops and storage facilities to try to combat these costs to themselves and to clients indirectly.


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Friendly regards


Elna Rudman

Financial Advisor/Specializing in Short-Term Insurance

Accredited in terms of FAIS fit and proper

Regulatory exams RE1 and RE5 completed

Key Individual & Representative

Elna Rudman Insurance Brokers FSP 5186

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