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SA Car Finance - Can I Choose a Different Car Insurance Company?

Discussion in 'Insurance Law Forum' started by drasko1989, 28 April 2016.

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  1. drasko1989

    drasko1989 Member

    28 April 2016
    Likes Received:
    Hello everyone,

    To who can provide me with some insight into my matter:

    I currently have a car under finance for just about 1 year now and the car yard that I purchased the car has provided the car insurance along with it, which will be referred to as (Company A). The car insurance is about to expire, in which I have taken the liberty in organising insurance with another company (Company B) which has given me a very competitive deal.

    I have notified Company A via phone that I am going to go with another company for my insurance, in which they replied that is not a problem and to just notify them once the last payment for the yearly policy has been processed.

    I have received a letter from Company A saying that I can renew if I want to but should I wish to cancel I will need permission from the Company that has issued the finance to me. The car yard that organised the car finance to me stated upon purchasing the car that it was compulsory to have it for one year and then I am free to choose any company that I want to insure my vehicle.

    My question, if anyone can shed light on the matter is, can Company A try to force me to continue having the car insurance with them or am I in my legal right to go right ahead and choose any insurance company that I wish?

    Any answers regarding my inquiry will be highly valued and appreciated.
  2. Tim W

    Tim W Lawyer

    28 April 2014
    Likes Received:
    Look at your loan papers. You might have borrowed the first year's premium as part of the Total Amount Financed.

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