Is it worth taking out scratch and dent insurance?

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Who among us hasn’t said, or at least thought, a word from the list of bad words after discovering a scratch, chip, or dent on our car?

Unfortunately, these types of minor damages are part and parcel of owning a car. The good news is that you don’t have to live with it. You can fix these imperfections and return your vehicle to its original condition. Of course, when you’re already on a tight budget, this is easier said than done, which is why several South African insurance companies have introduced their version of a ‘scratch and dent’ policy.

The question is… Is it worth paying a monthly premium just to not have to pay out of pocket to fix these small dents?

Here’s a closer look at scratch and dent insurance, and whether you should buy it.

What does scratch and dent insurance actually cover?

Basically, scratch and dent insurance covers damage to your car in case of, as the name implies, scratches and dents that mar the paint and body of your car. As an example, we looked at King Price Insurance’s scratch and dent insurance policy, which covers a wide range of types of minor damage, including chips, hail damage, damage to your chargers and tires, minor dents, light scratches, and tar removal.

In addition to checking how much you will pay per month, there are a few things you should check when looking at this policy.

What to check when it comes to scratch and dent insurance:

How many times can you claim in a year? For example, King Price has an unlimited number of claims per year.
What is the limit per claim?
Is there any excess that you will have to pay when claiming and how much is it?
Can this policy be taken alone or does it have to be added to another policy with the same insurer?

Is it worth having scratch and dent insurance?

Most people will question the need for this policy if they already have comprehensive auto insurance. It’s a valid point. Comprehensive insurance isn’t exactly the cheapest out there, so if you’ve gone to the trouble of choosing this option, why would you choose to add another expense? Especially in this economy?

There are actually 3 very good reasons to consider them.

First of all, the excess scratches and dents are much, much less. Since the deductible is a non-negotiable fee that you pay out of your own pocket when you claim, the amount matters. The excess linked to your comprehensive car insurance policy is usually significantly higher than the scratch and dent insurance excess. We are talking about a difference of R3,500 and R350.

With this in mind, you won’t be surprised to learn that a dent or scratch isn’t always worth claiming on your primary policy. In some cases, your claim may be denied because the excess exceeds the repair costs. But with a much smaller and more affordable excess, you can keep your vehicle in perfect condition.

The second reason is that with the right insurer, you could claim all year long for those small dings and chips that ruin the aesthetics of your car. Importantly, the right insurer should also offer a quick and easy claims process.

Lastly, however, is the fact that with a simple and affordable claims process, you can keep your car looking its best and in overall condition. This way, if you want to sell your car in the future, you are more likely to sell it for its maximum value. It’s not just that potential buyers are put off by these imperfections, but dealers deduct the cost of repairing scratches, dings and dents from the offer they give you, and may not deduct repairs based on the cost price. So if you think you might sell your car in the future, scratch and dent insurance will help you make the most of the sale.

With those 3 compelling reasons, along with the overall affordability of scratch and dent insurance, we’d say this policy has a place in your portfolio. If you want to know more or get a no-obligation quote, send WhatsApp (or call) to 0860 50 50 50 or click here.

Psst… This blog provides general information only and does not count as financial or product advice from King Price or our legal and compliance experts. Remember, all our premiums depend on risk profile and T&Cs apply. Our most up-to-date KPPD (policy drafting) can always be found here.