Christelle Fourie, Managing Director of MUA
Owners of the more than 52 000 Toyotas that have been recalled in South Africa during the last month due to technical defaults are unlikely to see a rise in their insurance premiums, despite the slightly increased risks associated with driving these vehicles.
In fact, says Christelle Fourie, Managing Director of MUA, with the resale value of Toyota models in South Africa having dropped between 4% and 8% in recent weeks, it is possible that the insurance premiums on these vehicles, which are partly based on replacement value, could actually decrease
Claims experience also plays a role in determining premiums on vehicle makes. She says that in this regard, while the recall has received a lot of attention and is a serious matter for owners, there have been very few claims as a result of the stated defects in South Africa.
“At present, the claims experience on these recalled vehicles would not warrant a review of the premiums charged. 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.”
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.”
She concludes that the responsibility of a recall sits with the owners of the vehicle and that owners should 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.”
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