The ‘big 5’ obligations of short-term insurance

Image: iStock
Image: iStock

Short term insurance. Sounds easy. You pay your insurer to take over your risk, so that when disaster strikes, your losses are covered. Bingo.

But sometimes it’s not that simple. Your insurer promises to treat you fairly, and to pay out when you claim, but you’ve got certain commitments too. A short term insurance policy is 1 of the great trust relationships of our time – and like all relationships, both parties need to build the trust. 

So, how do you get the most out of a short-term insurance policy? King Price’s Wynand van Vuuren has the lowdown.

                                               Image: iStock

1. Make full disclosure: When you apply for insurance and you’re asked a series of questions, be sure you’re 100% correct with your answers.

Insurers assess your risk and price your premium based on your answers – and if they find you weren’t correct, or withheld important info, they may disallow your claim, or pay only a portion of it. So, if your 19-year-old son is going to be driving your car, or there’s a thatch lapa near your house, be sure to mention it. 

2. Pay your premiums on time: If you don’t pay, you won’t be covered for that period. Full stop. And that could be an expensive oversight.

3. Keep your policy up to date: It’s super important to check your policy schedule and make sure all the details are correct. And, if your life changes in any way – if you change jobs, move house, install an electric motor on your gate, or get married, for example – be sure to share this info with your insurer.

Although some changes may seem minor, they could have a major impact on your premium and claims, but it’s not all bad news because your premium could actually go down! Insurers also need to know about any losses you suffer, whether or not you claim for them.

4. Specify the extras: Don’t assume that those flashy car accessories, like tow-bars and your top-of-the-range sound system, are automatically covered. The same goes for big-ticket personal items, like jewellery and laptop computers. Insurers can only protect what they know about. It helps to keep the original receipts for items like big screen TVs, so that you can prove their value if you need to claim. 

5. Keep it together: Insurers love clients who cover all their risks in 1 place – and they’ll often reward you with a discount. So, if you cover your home contents and a car together, for example, you should pay less.

car crash

                                               Image: iStock

And if you comprehensively insure your car with King Price, you don’t only benefit from premiums that decrease monthly in line with the value of your car, you’ll get up to 20% off if you cover 2+ cars – and you can also cover your Apple Watch, golf clubs, bicycle or hearing aid for just R1 a month. 

"Beyond that, make sure you know what your policy includes, and excludes,” says Van Vuuren.

“If you’re unsure, ask your client care consultant. We’ll do whatever we can to make sure you can sleep tight at night. But we need you to do a few things too.For more help with keeping your life right-side-up this year, visit King Price’s website."

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