Consumer journalist Wendy Knowler’s watch-outs of the week

In this weekly segment of bite-sized chunks of useful information, consumer journalist Wendy Knowler summarises news you can use: 

Ordering a generator or inverter online?

South Africans are scrambling for tech to help deal with catastrophic stage 6 load-shedding. With increases in the cost of living across the board, budgets are tight, so it’s tempting to hunt for the best prices online. But be extra wary when you land on the website of a company that doesn’t have a robust track record.

Vicki spent R15,000 on a generator, and was sent one not intended for the South African market.

“I see they’ve just added that it comes with adapters to their listing of this product.”

When she insisted on a refund, the company agreed, but said she’d be made to pay an admin fee.

That’s illegal in terms of the Electronic Communications and Transactions Act — you’re entitled to send back anything you’ve bought online (at your cost) within seven days of delivery, for a full refund, which must be paid within 30 days. Importantly, you don’t have to specify a reason for the return.

So check the returns policies on online retailers’ websites, and if that grace period isn’t mentioned, move on.

Check the insured value of your cellphone and car

When last did you check the value of your car or your cellphone, as listed as on your insurance policy? If you are underinsured, you’ll be left with a shortfall in the event of a claim, and if you are over-insured, you won’t get the full benefit of your monthly premium. In other words, you’re paying too much.

In the case of your car, the retail value is what it would cost to replace your current car, considering its age, condition and mileage. It’s higher than the market value, which is what you’d be able to sell your car for at any given time.

Both values depreciate every year, so make sure that reflects on your policy, as it affects your premium.

Leigh Ann’s experience serves as a warning to others.

“My phone was listed on my insurance policy as an iPhone XR with a value of R20,000 and for a few years I paid an insurance premium to cover that value.

“Then my phone got stolen and I went off and purchased a replacement phone for the amount of R20,000, with the understanding that this was the value it was insured for.

“But I was told by my insurer that my XR is now only worth R11,000 and I have to pay the difference!”

Assume nothing — make those checks.

About those 'uncapped' cellphone contracts

First, they are never uncapped.

Be sure to read the small print, specifically the bit about “Fair Use”.

If you use more data than the network considers fair, your use may be dramatically throttled, or stopped altogether. That makes the term “uncapped” misleading, of course, and I’m investigating one such case.

If you’re a heavy data user, it may make better financial sense to choose a package with a data allowance higher than the “fair usage” cap.

• GET IN TOUCH: You can contact Wendy Knowler for advice with your consumer issues via e-mail: consumer@knowler.co.za or on Twitter: @wendyknowler.