Your insurance broker or adviser, if you are using one, is obliged to inform you of any differences in the policies and ensure you understand the implications.
The first-quarter 2019 newsletter of the Financial Advisory and Intermediary Services (FAIS) Ombud outlines the case of Mrs M, who bought a new car in 2014. She had an insurance policy, and her new vehicle was supposed to have replaced the existing one on that policy. However, Mrs M’s insurance broker recommended that she take out a new policy with another insurer.
Mrs M was under the impression that this was a simple case of replacing one policy with another.
However, when she submitted a claim for damage to the vehicle, on which her 25-year-old son was the nominated driver, she found out she had to pay excesses she was not aware of. These were for the driver of the vehicle being under the age of 30, and the fact that the claim had been submitted within six months of the policy having incepted.