Primemeridian: beware the insurance value
While Primemeridian call their insurance policy Total Loss Protection, it’s not really. Sure it covers the vehicle for theft, hijacking, accident, write off and third parties’ property should you destroy it with your vehicle, it does not cover the retail value of the vehicle.
Oh, you think, it covers the market value. Most insurance companies cover the market value of the vehicle. (That is, the value that the car is actually worth in the market at the time of the accident and not the value of the vehicle at retail.) Primemeridian covers the vehicle for its trade in value; the value that the car dealership is prepared to pay in the event that you want to upgrade to a new vehicle.
This amount is usually less than market value and taken from the Transunion Auto Dealers Guide or similar publication. Because the payout value is much lower than conventional comprehensive insurance, Primemeridian can afford to offer total loss cover without asking for an excess and without increasing insurance premiums year on year.
Primemeridian third party cover
Primemeridian also limit their risk by only covering third party damage from and up to a certain amount. If the damage is less than R10 000, then insureds are expected to cover the cost themselves. Primemeridian also cover damage up to the value of R250 000. Anything more, the insured must pay the extra.
This means that if you cause an accident which costs the other driver R300 000, then Primemeridian will pay out R250 000 and the insured will cover the R50 000 on his or her own. By limiting the amount they pay out, they limit their risk which brings down your premiums. This means primemeridian offer some of the lowest car insurance premiums on the market.
If you would like to compare car insurance premiums with other insurance companies to determine whether or not you’re paying more than you should be, fill in our online form and an insurance representative will contact you shortly.