Managing, cutting losses related to motor accidents

Question: How can I manage losses and minimise repercussions in the event of a motor accident, and what are some options for coverage such as excess protector and no-blame, no-excess?

Motor vehicle accidents are unfortunate events that can result in financial burdens, emotional distress, and legal complications.

Accidents can happen at any time no matter how cautious a driver is.

Drivers can protect themselves from severe consequences by learning how to manage losses and investigating various coverage options.

Also read: Medical insurance: My insurer only paid Sh1m, what could be the reason?

The following are the immediate actions one should take after an accident to cut losses and ensure safety:

Check for injuries: First and foremost, assess the well-being of all involved parties and provide medical assistance if required.

Report the accident: Contact the police and inform them about the accident. Their presence is crucial in documenting the incident and may be necessary for insurance claims.

Gather information: Exchange contact details, driver's licence numbers, vehicle registration and insurance information with the other party involved. Also, gather information from witnesses, if any.

Document the scene: Take photographs of the accident scene, damages to vehicles, and any relevant road signs or signals.

Notify your insurer: Inform your insurance company about the accident as soon as possible to initiate the claims process.

Secondly, understand standard motor insurance coverage before exploring additional coverage options available in most policies as below:

Third-party liability insurance: Compensates for damages and injuries caused to other people and their property due to your fault.

Comprehensive insurance: This type of coverage not only includes third-party liability but also covers damages to your car due to accidents, theft, fire, vandalism and disasters.

Personal accident cover: Provides compensation for death, permanent disability and temporary loss of income due to disability, medical expenses and funeral expenses arising from an injury as a result of an accident.

Thirdly, minimise repercussions with excess protector coverage. An excess protector, also known as an "excess waiver" or "deductible waiver", is an optional add-on to your standard motor insurance policy.

The excess is the amount you must pay out of pocket when making a claim. By purchasing the excess protector, you can mitigate the financial impact of an accident. Here's how it works:

It lowers financial burden: In the event of an accident, the excess protector pays or reduces the excess amount you would otherwise have to pay.

This can save you from significant financial strain, especially in case of expensive repairs or multiple claims in a year.

It is an affordable add-on: Excess protector is usually available at a reasonable cost, making it a cost-effective way to safeguard your finances.

No blame, no excess, also known as non-fault or not-at-fault coverage, is another optional add-on to consider. It protects policyholders who are not responsible for the accident and works in the following way:

No impact on no-claim bonus: In a typical insurance claim, your no-claim bonus may be affected even if you were not at fault for the accident. However, with no blame, no excess coverage, your no-claim bonus remains intact.

It results in faster claims process as the insurer does not have to investigate liability thoroughly. Settling of claims is usually fast.

Also read: Medical cover: Where does my money go if I do not fall sick?

It provides peace of mind: With this coverage, you won't have to deal with the other party's insurer, making the claims process smoother and less stressful.

While accidents can be distressing, being prepared and informed about managing losses and navigating various coverage options can significantly alleviate the repercussions.

Mr Ondiek is a Senior Analyst at Zamara and can be reached via [email protected]