Motor Insurance – All You Need To Know
Having an understanding of how Ghanaian insurance companies work is vital when searching for motor insurance . Insurance is constantly changing and in that vein, we will bring your updates on the latest features and money-saving measures via our blogs. So do subscribe to them if you are interested in being kept up-to-date. Well will also endeavour to distill these blog posts into our expansive insurance guides. Our guides will teach you how your circumstances affect the price you pay, so that you can lower your premiums. If you require assistance finding motor insurance quotes, click on an appropriate button below after reading the short overview in each section.
Remember, you can also call a member of our team on the telephone number at the bottom of this page if anything you read on this page is unclear.
Types of Motor Insurance
If you are buying motor insurance, you first have to decide on the type of policy you need. There are basically three options.
During the process of applying for motor insurance you will be asked for many details ranging from personal details to location and security based questions. As with all insurance you are well advised to answer any and all questions as honestly as possible in order to ensure any claims are fully met by your insurance company in the event of an accident.
Insurance is a way of smoothing out the financial risk of a life changing event, such as a car crash or a death in the family. The insurance companies are able to take a stance on the acceptable level of risk of insuring you. This means that they have access to massive amounts of data relating to the probability of you being in an accident. They then look at the value of the car, your age and experience and provide a quote for the insurance.
If the insurance company had only insured you they could have had to take a loss on your car insurance policy (in the event of a claim) – however over the thousands of people who all take insurance through them the statistics average out so that they are able to make money over all of the contracts as a whole.
An important principle is insurable interest, this refers to the ability to prove that in the event of an accident, or if your car was stolen you would suffer financially. This is to prevent con merchants from insuring someone else’s car then causing it to crash and claiming on the policy.
Should your car be damaged by another car, usually your insurer has to pay for it, and their outlay is reclaimed from the responsible driver. This process is commonly referred to as ‘subrogation’. In the event of a claim you also need to be able to prove ‘proximate cause’ this is when your vehicle has been damaged and it has been damaged by an event covered by your motor insurance policy.
*Terms to keep in mind
For each year of claim-free motoring, Ghanaian drivers get a ‘no claims’ bonus discount which can lower premiums. Motorists can protect this benefit for an additional price when they have a four-year bonus. When protected, drivers are allowed up to two claims over a three-year period before they lose their ‘no claims’ entitlement.
For an additional charge you can get legal cover, which will cover you through your insurance if you’re involved in a legal suit. Always find out how much legal cover your policy entitles you to.
Value Added Services
Most insurers provide a 24 hour claim line that will allow you to alert the insurer in the event of an accident and also order the necessary claims forms. These claims lines are set up so that you are able to report an claim as soon as it happens. If your insurer doesn’t provide a 24 hour claim line, enquire as to why they do not, there’s unlikely to be a good reason. If they don’t have a good reason then place your insurance elsewhere.
Currently, none of our insurance partners offer this service. The way it works is, if your car is off the road as a result of an accident, an insurance company or your car dealership will provide you with a courtesy car; the cost of which you can claim back from your insurer. In the developed countries, most fully comprehensive policies offer a courtesy car at no extra cost. The garage carrying out the work on your car can usually also provide you with a courtesy car while your vehicle is being fixed.
Many insurance companies in the more developed countries offer breakdown cover at an additional price. Although none of the insurers we work with currently offers a country-wide breakdown service in Ghana, the general mood within the industry suggests we’re not too far away from such innovations. If you do come across an insurer offering such a service, always check the extra cost and ensure the cover is adequate for your traveling needs. If you already have insurance cover you may wish to add this to your policy at a later date.
Levels of cover breakdown cover:
Roadside assistance: This will be included in all breakdown cover policies. Someone will arrive at the scene of the breakdown and will attempt to fix the problem. If this isn’t possible then taken to the nearest car mechanic or your home (usually whichever is closer.)
Home assistance: It’s all very well having a breakdown cover policy that covers you while you’re out on the road, but what about if you get into your car in the morning and it won’t start? Policies won’t usually cover you if you break down within quarter of a mile of your home, so if your car isn’t in the best health, this could be a good option