Owners of recalled vehicles unlikely to fork out on higher insurance premiums

Christelle Fourie, Managing Director of MUA Insurance Acceptances

Owners of the more than 11 780 BMWs that have been recalled in South Africa due to manufacturing faults are unlikely to see a rise in their insurance premiums, despite the slightly increased risks associated with driving these vehicles. According to C

“At present, the claims experience on these recalled vehicles would not warrant a review of the premiums charged. BMW 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.”

Fourie says car owners should not be overly concerned about the possibility of their insurance claim being rejected were they to have an accident as a result of a stated defect. “At the moment, the vehicles will still be covered under most policies, with the insurer likely to seek recourse against the manufacturer.”

However, she advises anyone who has a vehicle that is part of a recall, to attend to the requirements as soon as possible. “It is important that owners consider their own personal safety as well as the safety of those around them. If you leave it too late to take your vehicle in to be assessed after being asked to do so, then some insurers may argue that you didn’t take reasonable care to prevent an incident from occurring, as stipulated in insurance policies.”

Fourie says the responsibility of a recall sits with the owners of the vehicle and owners should always keep records of any work carried out on their vehicle. “If you are unsure about how or if a recall affects your car, then contact your broker. It is better to be prudent and proactive than to have to address an issue afterwards.”

The BMWs that were recalled include all 5 and 6 Series models built from March 2003 to September 2010 after the company reported the battery cable cover that may have been incorrectly fitted and as a result can cause fire or electrical malfunction when the cable cover chaffs through the insulation and the wire makes contact with the body.

“Another German motorcar manufacturer, Porsche, has reported recalls in their model range this year. However, these recalls only affect the US and Chinese markets specifically, but should the faults be reported in the South African models, consumers can rest assured that this won’t have an effect on their insurance premium,” says Fourie.

“Owners of these recalled BMW vehicles should contact the nearest BMW car dealership, or the car dealership where they originally purchased the car, with any queries,” concludes Fourie.