General FAQS

 What is  comprehensive insurance ?

Comprehensive physical damage coverage pays for damage to your car from theft, vandalism, flood, fire, or other covered perils. It can also pay for damage to your car when it hits or is hit by another object.

What is the difference between Third Party cover and Full Comprehensive?

Third party car insurance is mandatory.  It only covers  damage to another persons property or if you injure them while driving. It must be remembered that, should your car be comprehensively insured, there is no need for a separate third party insurance policy. Comprehensive car insurance includes third party liability

What is First Loss ?

First Loss is a form of partial insurance where the insured decides he could not could not suffer a total loss and selects a maximum sum to insure for any loss.First Loss Policies are often used in Theft insurance to cover high value goods that would physically impossible to steal in single burglary.

 

What is  current market value?

Current market value is the price for which a vehicle of similar make & model and in the same condition and age can  be purchased on the day of the loss or damage.

What is a deductible/excess? How and when is it applied?

Deductible or excess  is a term used in insurance, meaning the initial portion of any insurance claim which the policy doesn’t cover.

Many policies allow you to set your own deductible figure – the higher you set it, the lower your premiums will be. The deductible/excess figure is especially important in car insurance – if the claim amount is less than the deductible/excess  or only slightly more, many people don’t bother to make a claim in order to protect their no claims discount.

The deductible applies only to the coverage on your house and personal property. It is the amount you have to pay out of your pocket on each claim. You can collect on your insurance policy once the deductible amount is exceeded.

What is deprecation? When is it applied?

It is a bookkeeping entry representing the decline in value of an asset that is wearing out. As property ages and becomes worn it often loses value. That loss of value must be taken into account in any adjustment of property insurance that covers loss of actual cash value. Deprecation does not represent a cash outlay.

How can I determine whether a company is reputable or not?

As with choosing a health or life insurance policy, it is important to investigate the company offering coverage. Companies should be financially strong with adequate reserves to pay claims.
To learn more about  a companies financial strength ratings visit www.ambest.com for complete details

Can an insurance company refuse to insure me?

Yes.

 

Why is it mandatory to have insurance?

Certain classes of insurance have been made compulsory by law in order to provide a  financial safeguard for society. E.g Workmen’s Compensation, Motor.

What is personal liability insurance coverage?

Personal liability coverage protects you and all family members who live with you against a claim or lawsuit resulting from (non-auto and non-business) bodily injury or property damage to others and for which you become legally obligated to pay. Defense costs are included, but the insurance company has no duty to defend you after the limit of liability on the policy has been exhausted.

What is replacement cost?

Replacement cost is the amount necessary to replace or rebuild your home or repair damages with materials of similar kind and quality without deducting for depreciation.

What is an Act of God?

An Act of God is a direct,violent,sudden and irresistible act of nature, which  could not  by any reasonable care have been foreseen or resisted. Circumstances which no human foresight can provide against and of which human prudence is not bound to recognize the possibility.

Can I use my private vehicle in the conduct of my business? Would any special conditions apply?

Generally, a personal auto policy may be all you need unless you are driving other people around frequently. In some cases, an independent contractor such as a carpenter or landscaper may need a commercial policy — if the vehicle is used more than 50 percent of the time for business purposes. And personal auto policies must have increased limits to cover any equipment that is permanently attached to the vehicle.

What’s a peril?

A peril is a harmful event covered by an insurance policy

What is salvage, and who owns the salvage in the event of a total loss settlement?

When an insurer makes a payment for lost or damaged property, the insurer is entitled to the Damaged property. Insurers receive salvage rights over property on which they have paid claims, such as badly-damaged cars. Insurers that paid claims on cargoes lost at sea now have the right to recover sunken treasures. Salvage charges are the costs associated with recovering that property.

What should I consider when buying auto insurance?

Decide how much liability coverage you want to carry. This is highly subjective. The liability levels you have on your other policies can serve as a guideline.
Determine which optional coverage you will need to feel protected. For example, do you want full comprehensive damage coverage, or is the market value of your car too low to warrant purchasing that type of cover?

 

 

 KIA will help you to decided what you need, and can help you  choose from the options we have available.

Give us a call Today. 268 462 0049

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