It’s helpful to know what to look out for when scouting around for the ideal short-term insurance plan. Standard Insurance Limited has put together answers to common enquiries from our wealth of knowledge, to help get you clued up on insurance before signing on any dotted lines.
When buying insurance compare ‘like for like’
Many people assume that all insurance products are the same, so the will simply compare them based on price- don’t do this. When buying insurance, make sure to compare ‘like for like’, as there are many benefits that may or may not be included in each policy, they may also have different limits. First, compare what’s covered, then compare the limits of that cover. Make reading through your policy documents a habit, so that you thoroughly understand what you’re paying for.
Higher premiums vs lower excess, and vice versa
You need to determine what excess you can afford to pay, as a higher excess usually decreases your monthly premium. An easy way to put this into perspective is to ask yourself: if you were in an accident, would you be able to pay R3000 or R5000 for repairs? This will be an out-of-pocket expense but increasing this amount will bring down your monthly premium. So, do you pay more every month as a premium for lower excess, or less and then have a higher excess if needed?
What’s the deal with bundling?
Bundling is when you insure everything from vehicles, building and home contents with a single insurer. This helps to simplify the management of your insurance and will likely get you a discount on your monthly premium. If you choose to bundle, make sure that you have sufficient cover for all your assets. If not, it’ll be better to get separate policies.
Why is it important to specify your items?
Items that you regularly take out of your home should be covered in case of loss, theft or damage. These items must be individually specified so they can be covered appropriately, as if they aren’t, they could be excluded from the cover.
Why does the cost of insurance go up over time?