Maya Fisher-French

CityPress - - Business -

the ve­hi­cle, which can ei­ther be re­tail, mar­ket or trade value.

Loots says that, for ex­am­ple, an in­surer might fol­low a 60% rule – if a car is in­sured for a re­tail value of R100 000 and the es­ti­mated cost of re­pairs ex­ceeds R60 000 (60% of R100 000), the in­surer will de­ter­mine that the car is un­eco­nom­i­cal to re­pair.

The in­surer might then elect to rather pay out the in­sured for the full in­sured value of R100 000 (less any ex­cesses if ap­pli­ca­ble), or to re­place the ve­hi­cle with an­other one of the same or sim­i­lar make and model, rather than re­pair the ve­hi­cle.

John Melville, head of risk ser­vices at San­tam, says that a ve­hi­cle is a write-off not only if it does not make

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