Is your Vehicle covered at the Carwash
Wendy Knowler’s article highlights the serious financial risks insurance policyholders face due to the “theft under false pretenses clause found in many vehicle insurance policies. This clause allows insurers to reject claims if a vehicle is stolen through deception — such as someone tricking a car wash or mechanic into handing over the car and keys.
This happened to Caroline Woodley, whose R1.3 million Ford Everest was stolen from a car wash. Her insurer (CIB, underwritten by Guardrisk) denied her claim, citing negligence and the trickery clause in her policy. Despite widespread consumer unawareness, this clause is common both in South Africa and globally.
The Ombudsman sided with the insurer, confirming the clause’s legitimacy. While Woodley recovered some money through a public liability claim against the car wash’s insurer, she was left with a R200,000 shortfall.
The article serves as a warning for policyholders to carefully review their insurance policy wording — especially exclusions.
WHAT DOES YOUR POLICY WORDING SAY?
All insurers exclude some kind of theft cover from certain types of custodians of your vehicle.
Make sure you fully understand the exclusion of your specific insurer.
Some exclude theft because of false pretenses and fraud.
Some exclude theft from any custodian.
Some insurers exclude theft of your vehicle at the motor dealer or during the process of selling.
Almost all insurers require that you take all reasonable steps and precautions to prevent losses.
Think twice before you hand over your vehicle.
What special measures are in place to prevent fraudulent actions or theft of your vehicle at the carwash? Does the custodian have insurance
against theft of client vehicles?