Recent years have seen a dramatic increase in insurance claims which resulted in the public becoming more aware of the importance of short term insurance. Unfortunately, as claims increase, so do premiums and it is important to ensure your cover is correct and sufficient.
Kainos Short Term (Pty) Ltd is a well-established independent brokerage specialising in personalised insurance solutions. Here are a few tips to optimise the benefits of your Short Term Insurance policy:
- Don’t be under-insured.
Most people are insuffiently covered on their Household Contents or Building. Both should be insured at replacement value. Household Contents include everything you would take along if you move house, from furniture and appliances to clothing, linen and cosmetics. If you are unsure of what your total sum insured should be, you should complete an inventory to calculate the amount needed. If you are underinsured at the time of a claim, the Insurer could apply average, which would result in only a percentage of your claim being paid.
- Adhere to Insurer requirements.
Any claim would probably be refused if the Insured did not comply with the requirements set by the Insurer. These requirements could be security measures, a windscreen inspection or restrictions on the age of allowed drivers.
- Don’t assume anything is included if it is not stated on the schedule or policy wording.
If you, for example, require excess waiver or car hire following a claim, ensure that it is noted on your schedule. These are normally charged at an additional premium and not automatically included. Also take note of the excess structure and additional excesses (e.g. for a very young driver) as these differ from product to product.
- Ensure correct detail.
Incorrect detail could influence your premium and ultimately lead to a claim being refused. Important detail includes (but is not limited to): Physical address, any non-standard construction, security measures at your home and on vehicles; regular driver information (name, age, licence detail, etc.), vehicle use (private or business); all previous claims and convictions, vehicle make and model, etc.
- Combine your home and motor insurance.
Insurers charge a higher rate on motor alone policies. By combining your cover, you would get a better premium.
- Save the roadside assist number on your phone.
It is also advisable to familiarise yourself with the Assist benefits. These may include anything from appliance repairs to drive-me-home services.
- Use a broker!
The past number of years have seen the insurance industry transformed into one that requires professionalism, extensive knowledge and fairness to clients. A broker will always have more negotiating power with an Insurer than a single policyholder. Using a broker also protects the client as brokers are required to have Professional Indemnity cover in cases where clients received inadequate advice or service.