Despite problems, premiums on Toyota models may decrease
This after models around the world are being recalled due to technical faults.
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With recent reports that Toyota models around the world are being
recalled due to technical faults, South African car owners may fear that
premiums on these cars are due to rise.
However, the managing director of MUA insurance provider said that the
opposite may be true and that Toyota owners may actually see a drop in premium
prices.
Due to the negative publicity of Toyota over the past few months, the resale
value of some models have actually dropped as much as 8%, so that premiums may
decrease over time.
In terms of the affects of the technical faults on the South African market,
insurance groups say that the few claims received in the country would not
result in premium increases.
"At present, the claims experience on these recalled vehicles would not
warrant a review of the premiums charged," said Christelle Fourie. "Toyota has
always had a good reputation in South Africa as a safe and reliable manufacturer
and this continues to be reflected in the premium calculations on their
vehicles."
As such, Fourie warned Toyota owners to listen to recall requirements as
spelled out by manufacturers.
"It is important that owners consider their own personal safety as well as
the safety of those around them," she said.
"If you leave it too late to take your vehicle to be assessed after being
asked to do so then some insurers may argue that you didn't take reasonable care
to prevent an accident from occurring as stipulated in insurance policies,"
warned Fourie.
Fourie said that if Toyota owners were not sure about whether a recall
affects their vehicle or not, they should contact their insurance brokers who
would be happy to assist. "It is better to be prudent and proactive than to have
to address an issue afterwards," she said.
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