Understanding insurance… Because we give a FAQ

Insurance policies are full of specific terms, and most people only need to understand them the moment they want to make a claim. Wynand van Vuuren, our partner for client experience here in the kingdom, answers the questions clients ask most: what underinsurance really means, why your car gets inspected, who counts as the regular driver, and how to get a claim sorted faster. Know these answers now, and you’ll be sure-sure about the details that keep you awake at night.

Quick answer

• Underinsurance means your cover falls short of today’s replacement value, so a valid claim only pays out proportionally, not in full.
• Car inspections confirm your car is real and log any existing damage upfront, via the King Price app, portal, or an approved inspection centre.
• The regular driver is whoever drives the car most each month, and it must be reported the moment it changes.
• Car hire cover gets you a rental for up to 30 days while a valid claim is processed, but it doesn’t cover every type of repair.
• Reporting within 30 days, and using your insurer’s approved tow service, is the single biggest thing you can do to speed up a claim.

Why these details trip people up

Insurance policies use specific terms for a reason: they define exactly what’s covered, and by how much. Most people never look closely at replacement value, inspections, or the regular driver until something goes wrong and they need to claim. Getting these basics right before you need them means fewer surprises and a smoother payout when it counts.

None of these details are complicated once they’re explained plainly. The confusion usually comes from insurance jargon dressing up a fairly simple idea in unfamiliar words. Once you know what a term actually means for your cover, the rest of your policy tends to make a lot more sense too.

What you’ll learn

• What underinsurance means and how it affects a payout
• Why your car needs an inspection, and how to do one
• Who counts as the regular driver, and why it matters
• How car hire cover works, and what it doesn’t cover
• How repairs get arranged, including for collectable cars
• The steps that get a claim settled faster

Frequently asked questions

What’s underinsurance?

Underinsurance

When your cover isn’t enough to fully replace your buildings, home contents, or personal belongings at today’s prices, so a valid claim only pays out proportionally.

Underinsurance happens when your cover isn’t enough to fully replace your buildings, home contents, and personal belongings at today’s prices. For buildings, the insured value should account for repairs and rebuilds, outbuildings, walls, pools, permits, demolition, waste removal, and site safety.

If it falls short, claims pay out only in proportion to what you’ve insured. For example, if a building is worth R400,000 to rebuild but you’ve only insured it for R200,000, half its value, King Price will only pay 50% of any valid claim on it.

Why do they inspect my car?

Most insurers want to inspect your car unless it’s brand-new. This confirms the car is real and records any existing damage upfront, since that damage won’t be covered later. It’s a straightforward way to keep things fair and keep premiums lower for everyone.

King Price clients can self-inspect via the app or self-service portal, or visit an approved inspection centre. If you’ve already had a cash payout for repairs on the car, you’ll need to complete a fresh self-inspection within 30 days of those repairs being finished.

Who’s the regular driver?

Regular driver

Whoever gets behind the wheel of the insured car most each month, and who needs to be listed on the policy.

The regular driver is whoever gets behind the wheel of the insured car most each month, and they need to be listed on your policy. If that changes, tell your insurer right away. It can affect your premium.

Other people can still drive the car sometimes, as long as they don’t drive it more often than the regular driver and they have your permission. If your teenager starts driving more than you do, for example, they become the regular driver, and that needs to be updated on your policy straight away, since it changes the risk profile behind your premium.

Can I get a rental car?

You can add car hire cover to your policy, so you’ll have a rental if your insured car needs repairs, is undrivable, or is stolen and not recovered, as long as there’s a valid claim. This typically lasts up to 30 days while the claim is being processed.

Car hire is an optional add-on to comprehensive cover, and it doesn’t kick in for every repair. You can’t claim it if your car’s being repaired under scratch and dent, car warranty, roadside assist, or a normal service. When you do use it, you’ll still need to cover fuel, the security deposit, running costs, and collection or delivery fees yourself.

How do I choose a repair provider?

Insurers often partner with trusted service providers to manage costs, maintain quality, and keep repairs on schedule, so your car usually goes to an approved repairer. If you have a rare, vintage, or collectable car, you may instead get a cash settlement so you can arrange the repair yourself.

In a valid claim, King Price decides how to settle it: a cash payout, a repair through their network, a replacement, or some combination of the three. For financed cars, whatever’s still owed to the finance house gets paid first, up to the insured value, before any balance comes to you.

How can I help speed up a claim?

Use your insurer’s approved towing service. Skipping this can add unnecessary time and cost, so save that number in your phone now. Check your policy document for specific timeframes, contact your insurer as soon as possible, ideally within 30 days of the incident, and follow their instructions promptly.

You’ll need a police case number for accidents involving injury or property damage, plus your own statement and the attending officer’s details. Keep proof that you own whatever you’re claiming for too, such as receipts, photos, or a valuation certificate, since King Price can reject a claim it can’t verify. Don’t dispose of a damaged item before your claim is settled either, since it may still need to be inspected.

Van Vuuren says insurers aim to write policy wording in clear, everyday English. But if something isn’t clear, ask. Incorrect information leads to incorrect cover, and that can cause problems when you claim.

Common mistakes people make

• Insuring buildings or contents for less than today’s replacement value to save on premium, then discovering the payout is only proportional
• Forgetting to update the regular driver when someone else starts driving the car more often
• Calling a random tow truck instead of the insurer’s approved line, and getting stuck with the bill
• Assuming car hire cover applies to every repair, when it excludes scratch and dent, warranty work, roadside assist, and routine services
• Throwing away a damaged item before a claim is settled, when it may still need to be inspected
• Not disclosing car modifications, which can affect how a claim gets handled

Tips to get this right

• Get a professional valuation for buildings and high-value contents so the insured value reflects today’s rebuild cost, not what you paid years ago
• Self-inspect a newly insured car via the app or portal as soon as your policy starts
• Tell your insurer immediately if the regular driver changes, even if it’s just for a season
• Check your policy schedule for the maximum number of days your car hire cover allows
• Save your insurer’s tow number in your phone before you ever need it
• Keep receipts, photos, or valuation certificates for anything you’d need to prove you own
• Report any incident within 30 days, even if you’re not sure you’ll claim

Checklist before you renew or claim

• Insured value for buildings and contents matches today’s replacement cost
• Regular driver listed on the policy matches who actually drives the car most
• Car hire cover added if you’d need a rental during repairs
• Approved tow number saved and easy to find
• Proof of ownership documents kept somewhere accessible
• Any car modifications disclosed to your insurer

Real world example

Say a home would cost R400,000 to rebuild at today’s prices, but it’s only insured for R200,000, half its value. If a fire causes R100,000 of damage, the payout isn’t the full R100,000. Because the home is insured for only 50% of its worth, the claim pays out at 50% too, which comes to R50,000. The client covers the remaining R50,000 out of pocket, on a claim they assumed was fully covered.

Car hire cover plays out differently. If a client’s insured car is stolen and not recovered, and car hire was added to the policy before the theft, King Price pays the rental company directly for up to the maximum period on the policy schedule. The client still needs to cover fuel, the deposit, and running costs themselves, and if they hadn’t added car hire cover beforehand, there’s no rental at all, regardless of how valid the theft claim is.

Related topics

• Why regular drivers matter for your premium
• What King Price’s optional car insurance extras cover
• How to submit an insurance claim step by step
• Common insurance jargon, explained simply

Summary

• Underinsurance pays out proportionally, so insure at today’s replacement value
• Car inspections protect against fraud and confirm existing damage upfront
• The regular driver must be reported the moment it changes
• Car hire cover has exclusions, so check what it doesn’t cover before you need it
• Claims move faster with an approved tow, quick reporting, and proof of ownership

How King Price can help

Need a little extra help? Call or WhatsApp 0860 50 50 50 for a commitment-free quote from the king of insurance.

Psst… This blog provides general info only, and doesn’t count as financial or product advice from King Price or our legal and compliance experts. Remember, all our premiums are risk-profile-dependent, and T’s and C’s apply. Our most up-to-date KPPD (policy wording) can always be found here. Our website T’s and C’s can be found here.

King Price Insurance Company Ltd is a licensed non-life insurer and registered financial services provider. (Reg no. 2009/012496/06 | FSP no. 43862)

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