Underwritten by Prime Meridian Direct, Carprehensive is essential car insurance catering for only a few perils. Carprehensive insurance is based on the premise that insureds can reduce their risk of accident and theft themselves, and if not, then at least financially cover cheaper damage out of their own pocket. Despite its name, Carprehensive is not comprehensive insurance for your vehicle as it does not cover your vehicle for full third party damage or full accidental cover.

Carprehensive only covers your vehicle in the event of theft or hijacking and accidental damage that results in write-off. The policy also only pays out the trade value of the vehicle, as opposed to the market value. This, according to the Ombudsman of Short-term Insurance*, is the trade-in value and not the full value of the vehicle.

In the event of complete loss of the vehicle, Carprehensive will pay 100% of the trade value of the vehicle, whether by theft or accidental damage. If the vehicle is involved in an accident, but is not a total write-off, the insurer will only pay out if the damage is 80% of the current trade in price. If your vehicle causes damage to a third party’s vehicle, Carprehensive will only cover the damage if it is more than R50,000 and less than R250,000. So what makes Carprehensive insurance different?

Cheap insurance premiums

The majority of vehicles on South African roads are not insured because premiums are too expensive. By only catering for the higher cost perils such as complete loss of your vehicle, Carprehensive insurance premiums are lower. As the value of the insurance is only for the trade-in value of the car, the premiums are lower too. Carprehensive also only pays for major damage to third-party vehicles, expecting insureds to cover smaller damage themselves, which reduces their risk and your premiums.

Simple insurance

Most comprehensive insurance policies include a range of benefits and unlikely insurable risks that push up the price of the premiums. By only catering for major perils, Carprehensive insurance is simple.

Exclusions

Outside of standard exclusions, the Carprehensive insurance policy excludes all perils as a result of all unlawful or negligent driving. As most accidents are caused under these conditions, the Ombudsman of Short-term Insurance warned that the cover in effect caters for no risks. Click here for more information on the OSTI’s comments on Carprehensive.