Vehicle Insurance: Eligibility & underwriting

Eligibility and underwriting decide whether you are offered cover and at what price. Here is what to expect.

The registered owner of a vehicle can buy a policy. Policies for a second-hand vehicle must be transferred to the new owner within 14 days of purchase.

Insurance must cover the vehicle’s registration number, make, model, variant, year, cubic capacity and location of registration.

IDV (Insured Declared Value) is the maximum payout in case of total loss or theft. For vehicles up to five years it reduces on a standard depreciation schedule; older vehicles are valued by agreement.

If a policy lapses, a vehicle inspection may be required and the no-claim bonus can be lost. Most insurers allow the bonus to be retained if renewed within a stated window after expiry.