Why keeping your car insurer in the loop could save your claim

Keeping your vehicle insurer up to date with the latest, accurate information can help you avoid serious potential financial and legal consequences.

This includes everything from where you park your car, who the regular drivers are, as well as your carpool setup.

Insurance premiums are based on the regular driver’s profile.

While it is acceptable for someone else to drive your vehicle occasionally, it becomes a problem during the claims process if it is discovered that you have misrepresented the regular driver.

Failure to disclose can lead to reduced payouts and even a full claim rejection, according to Sherry Sibeko, executive head of personal lines at MiWay Insurance.

"As insurers, we use the regular driver to create or to determine the risk so that you pay a premium that is linked to your own risk profile."

When it comes to carpooling, alternating vehicles between your colleagues is fine; the problem arises once money is exchanged for transport.

"It has to go to the commercial space. The risk of paying passengers compared to a domestically used car is completely different. Even though it is a slight profit, it can cause big problems."

Sherry Sibeko, MiWay's executive head: personal lines, is in conversation with Lester Kiewit.

Listen to the discussion below: