After the annoyance and possible embarrassment of a minor vehicle accident, most people will wonder how much it will cost to fix the scratch or the dent on their car and whether to involve their insurance provider. After all, even damage from a small incident can turn out to cost thousands of rand to fix. Let’s consider some of the factors you should consider in your decision: What is the excess payment? The excess is an amount of money that will come out of your pocket when you claim from your car insurance. If you have a low excess - say, R1500 - it could make sense to claim for a typical small scratch/dent, which is usually in the region of R3000 to R5000 to repair. But if your excess is larger - for example, R10000 - it will probably be more than the cost of the repair. So, you could claim and get a small amount or nothing back for your trouble. On top of that, your insurer may consider that you made a claim during the year when it’s time for your annual premium review. It may assess you as a higher-risk customer and increase your premium as a result. Your premium increase over a couple of years could be higher than the cost of paying for the repair of your car, out of your own pocket. Do you have a no-claims bonus? Many car insurers offer a no-claims bonus. As the name implies, this is an incentive not to claim from your car insurance. The bonus is usually a percentage of your premiums paid back to you in cash, after a set period of time, provided you have not made a claim. You will lose this bonus if you claim after a minor incident, even if it turns out that your claim was lower than your excess. Was another vehicle involved? This is when it starts to get a bit trickier to decide. If the accident was not your fault, the other driver might apologise profusely and promise to pay personally, without involving insurance companies. You should be careful of accepting such an offer, even if it seems attractive not to hassle with insurers and excesses, and all the accompanying red tape. First, you will be on your own, without your insurer to fight in your corner if the person does not honour the deal. You could find yourself chasing them for weeks for the money they promised to pay. Second, it is possible that something that looks like a minor dent on your bumper could hide deeper damage to your car, that might be more expensive to repair than the other person anticipated. Likewise, if the accident was your fault, you can offer to settle out of pocket, but it might not always be a good idea. It could be that it will cost far more to repair the other vehicle than you expected or can afford. Additionally, the other driver might try to hit you with unfair claims, for additional damage and injury, which is when you’d like to have your insurer at your side. Are policies for minor damage worth your while? Many insurers now offer policies that cover scratch and dent damage - the premium may be as low as R100 a month. Be aware that such policies cover only up to a small amount - for example, R3000 per incident. This does not mean the insurer will pay for the first R3000, but that it will pay only if the repair will cost less than R3000. So, if the damage is deemed to be R3000.01, your claim will be rejected. In practice, this cover is seldom enough to result in a valid claim, because even a tiny dent on a mid-range sedan can cost R5000 or more to fix these days. Plus, you will need to accept the word of the insurance company’s assessor about whether the damage will cost more than R3000 to repair. Your friend at the autobody repair shop might be able to do the job for less, but that doesn’t matter. Check the wording of your policy carefully and choose a reputable provider if you are going to go this route. So, what can you do? Scratches and dents are a reality of car ownership. Save some cash in a rainy-day fund for minor repairs and other day-to-day hassles. Try to find an affordable and reputable car repair shop you trust to buff out scratches or do micro-location paint jobs for you. Think about your cash flow and risk tolerance when shopping for car insurance. If you are really worried about paying for repairs out of pocket, opt for a policy with a lower excess. If you are buying from an online provider, you can experiment with different excess values online, or on the app, to understand how reducing or increasing the excess will affect your monthly premium. For any queries please contact Rethabile and Edmond email: shortterm@daberistic.com tel:(011)658-1333 Written by Sumarie Greybe Source : Personal Finance
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Many people choose a health insurance option with a designated hospital or contract doctor. How to find doctors and hospitals has always been a problem for many people. Here are the steps to find a doctor or hospital close to your home or work location according to your health insurance options. Step 2: Click on “Find a doctor close to you”. Step 3: If you are looking for a hospital, click on “Hospitals and clinics”. If you are looking for a doctor, click on “Doctors”. Step 4: In the area bar, type the area you want to search for and select the option that appears automatically, or you can use the “current location”. Step 5: Click “Cover” and confirm that “Full network cover” is checked. Click apply. The names of different doctors (or hospitals) will appear below. Step 6: After you click on it, there will be contact information for the doctor (or hospital). If you have any questions, please contact Namhla or Tammy in our health department on (011)658 1333 or email health@daberistic.com
Debt can be a useful financial tool if it is managed correctly, and you should look out for ways in which you can make debt work for you. There are different kinds of debt: the good, the bad, and the ugly. It is vital that you know the difference. THE GOOD Good debt comes in the form of loans that allow you to turn an amount of money into something more. Examples of good debt are loans used for buying a property, doing home improvements, studying or establishing a small business. It would take an eternity for an ordinary person to save enough to buy a house for cash, so home loans play a huge role in making property ownership affordable. Home renovations add value to your property, so they are a good investment. A student loan allows you to get an education and increase your long-term earning potential, while a small business loan can help you to set up or expand your business. THE BAD Bad debt is debt used for consumable items that have a short lifespan. Clothing and retail accounts, and using credit for meals at restaurants, overseas holidays, and expensive vehicles that decrease in value the minute you drive them out of the dealership, are all examples of this kind of debt. Most credit card transactions are considered bad debt. Credit card users tend to start out being disciplined with their purchases, but end up letting things spiral out of control. You should look at what you can afford and limit your monthly spending to below that amount. You need to pay back the debt in full every month. A credit card can, however, be a useful tool for building a good credit rating if you can illustrate a good track record for settling your account on a monthly basis. THE UGLY The ugly part of debt surfaces when you end up paying shockingly high interest rates on loans, yet have nothing to show for the money you have spent. This is often the case when people make use of so-called “loan sharks” or “mashonisas”, who make good profit on providing loans at high interest rates (up to 50%), while their customers have no legal protection. Reports show that a large number of South Africans make use of this informal service, and you are advised to try to avoid falling into this kind of debt trap. After many demands for payment, creditors often end up handing people over to debt collectors, who are often ruthless in their attempts to get debtors to pay. They are also known to buy creditors’ debt, at a discount, and then pursue debtors to recover money now owing to them. Tips on managing debt * Be aware of how much is owed and to whom. * Pay accounts on time and never skip payments. * Draw up a monthly calendar for payments. * Commit to paying at least the minimum required. * Identify which debt is the most urgent to settle - usually it is the one with the highest interest rate. * Set up a monthly budget in a bid to control your spending. If you are trying to manage your debt, it’s important that you don’t continue accumulating it. If a rate cut does become a reality, you should use it as an opportunity to improve your situation. Be conscious of the type and purpose of the debt you take on. Remember to protect your future self. The right amount of good debt can help you to save for the future, free of bad debt. Source: Personal Finance. Author: Herman Lombard is the founder and executive director of investment and financial services group African Unity. We offer businesses and non-profit organisations two types of investment account facilities: 1.Business Investment Account We can offer your business a Business Investment Account facility, by opening an Allan Gray investment account and investing in Allan Gray Money Market Fund. Minimum starting balance R100,000 You can view account online, add or withdraw at any time, takes 3 to 4 business days for money to be back in your business bank account. Current interest rate 7.8% Interest is paid monthly. Our advice fee is 0.23% (including VAT) for the first R5,000,000, then 0% for amount above R5,000,000. Click here to download an illustrative investment overview 2.Enhanced Business Investment Account An Enhanced Business Investment Account offers a higher yield, by investing in a portfolio of income and fixed interest funds in an Allan Gray Investment Platform account. Minimum starting balance R100,000 Recommended minimum investment term: 12 months You can view account online, add or withdraw at any time, takes 3 to 4 business days for money to be back in your business bank account Current interest rate 8.96% Interest is paid monthly. Some income funds in the portfolio pay interest quarterly. Our fee is 0.23% (including VAT) for the first R5,000,000, then 0% for amount above R5,000,000. The net effective interest rate is as follows: Click here to download an illustrative investment overview.
If you would like to apply for a business investment account, please contact our Life & Invest Department on 011-658 1333, email invest@daberistic.com. |
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January 2025
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