Car Consumable Insurance

9 Things You Should Know About Car Consumable Insurance Coverage

Car Consumable Insurance. To understand consumables in-depth, first, understand the consumables used in vehicles. Consumables serve specific functions, and once used up or consumed, they cannot be used again. It contains items such as a fuel filter, engine oil, nuts and bolts, screws, brake oil, lubricants, grease, and air conditioner gas. These consumables are typically not covered by comprehensive auto insurance policies. As a result, vehicle owners who want to protect the consumables in their vehicles must purchase a separate add-on cover in addition to their regular insurance plan.

In this blog, we will discuss everything a policyholder should be aware of when purchasing consumables add-on cover.

Here are the 9 things to know about Car Consumable Insurance add-on cover:

  1. The consumables coverage is an add-on to the comprehensive plan and hence certain conditions need to be satisfied in order to avail claim under this coverage. 
  2.  Consumables claims are accepted only if the consumables are admissible under the section referring to own damage of the comprehensive insurance policy. 
  3.  This add-on cover enhances the comprehensive car insurance policy, so just like the general car insurance claims, policyholders are advised to immediately report incidents like theft or collision without any delay to ensure that their claims are honored. 
  4. In case of theft or accident, vehicle owners need to repair the car consumables within three days in order to get their claim honored. If vehicle owners do not repair within the time then the claim is rejected.  
  5. Consumable add-on cover can only be obtained for cars that are less than five years old. Vehicles that are older than five years cannot obtain this add-on cover.  
  6. Vehicle owners should always carry a valid driving license along with a copy of the insurance documents in the car. If these documents are not possessed by the vehicle owners at the time of the accident, then their claim will be invalidated.  
  7. The claim under the consumable add-on cover will not be granted if the policyholder was driving under the influence of alcohol, driving maliciously, wear and tear, depreciation of the vehicle part, breakdown, or in case of consequential damages. 
  8. Using a private vehicle for commercial purposes will also lead to claim rejection. 
  9. This add-on cover offers coverage to more specific parts of the vehicle compared to the usual car insurance policy. 

Many times, a claim for consumables damages is denied simply because the policyholder is unaware that it does not fall under comprehensive coverage. As a result, it is always advantageous to be aware of the policy clauses in order to understand what are the absolute requirements.

Third-party liability insurance may appear to be a less expensive option than comprehensive insurance, but an accident involving your vehicle may end up costing you more than you bargained for.

Jackson must make an important decision about car insurance after saving up for his new four-wheeled pride and joy. Third-party liability insurance will provide him with some extra cash each month to help pay for gas and other expenses, but comprehensive insurance will provide him with additional peace of mind, as his new VW Polo will be covered for a broader range of risks or incidents. So, which one does he choose?

Signed up for third-party only insurance

Getting back into the morning commute routine has been difficult for Jackson, and after a few too many snoozes, he’s rushing to get to work on time. He slows down as he approaches an intersection because the traffic light turns yellow. But the car behind him doesn’t get the message and hits him in the boot. Both he and the other driver are unharmed, but his cool new wheels have taken a beating.

The good news is that he’s covered for the damage done to the other car because he signed up for third-party only insurance – because it was cheaper, and extra cash is king right now. The bad news is that he’ll have to pay for it.

What comprehensive car insurance covers

Consider the following scenario, but from a different angle: Jackson’s car still needs to be repaired as a result of the incident, but comprehensive insurance alleviates the pain by paying to repair both the other car and his own. The money he would have saved by choosing third-party only insurance would never have covered the tens of thousands of dollars required to rebuild his ruined car. The comprehensive policy also protects him against a wide range of other types of claims, which can be extremely useful.

When comparing the costs of third-party only and comprehensive insurance for his car – and depending on a variety of data that comprise his risk profile – the cost of third-party only liability insurance can be as low as 20% of the price of comprehensive cover.

But would he really be putting aside the other 80% every month in case of an emergency? Assume his third-party-only quote was $200 and his comprehensive quote was $1000. Even if he had saved the R800 he was saving each month for a vehicle-related emergency, he would have had to save that $800 for 37 months (nearly three years – nearly as long as the repayment term on his car!) to have enough money.

This Post Has 2 Comments

  1. This is the right website for anybody who wants to find out about this topic. You understand a whole lot its almost tough to argue with you (not that I personally would want toÖHaHa). You definitely put a new spin on a topic which has been written about for years. Excellent stuff, just excellent!

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