FNB Insurance Brokers reminds about car insurance restrictions
This reminder comes before end-of-year school parties begin.
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First National Bank Insurance Brokers (FNBIB) are reminding South Africans that, with the end of year fast approaching, many young people will be asking to borrow the family car.
If the policy covers drivers of all ages, this shouldn't be a problem.
However, many families opted to take out car insurance restricted to drivers of 25 years of age and over only, in a bid to save on their premiums during the recent recession.
As such, FNBIB reminds policyholders that should a younger driver be involved in an accident, an age-restricted policy will not pay out for damages or injuries.
"Scaling back can be an effective means of containing insurance costs, but it is vital that consumers operate within the agreed limits," said the General Manager of Marketing at FNBIB, Debbie Barret.
"The issue comes into sharp focus at this time of year when dad's car is needed by the son to provide 'wheels' for things like an end of year party. Dad might be inclined to hand over the car keys but if cover has been amended to exclude someone under 25 or if some other limit has been applied, the youngster might not be covered."
She said that some young people may be tempted to 'borrow' the car and tell their parents later.
"Again, the insurance implications can be grave if there's an accident," she said.
Parents are urged to ensure that their keys are kept safely locked away so that youngsters are not tempted to use them without permission.
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