Insurance is something that has become quite essential in our modern lives, particularly short term insurance. Short term insurance is the insurance you take out on your assets such as your car, your house and your household contents. Businesses can also take out short term insurance on their current stock, machinery, and more. But it’s important to make sure that you compare various providers of short term insurance in South Africa.
Despite the current increase in “direct” insurers who pride themselves on cutting out the middle-man, an advisor experienced in short-term insurance can offer you a valuable and personalized service. Not only are they in a position to “shop the market” in terms of rates and service, but they often have more clout with the insurers when it comes to claims.
How it Works
Short term insurance in South Africa covers all types of insurance policies other than life insurance. This can include property, vehicle, medical, household, personal liability, travel and business insurance. The reason why these policies are classified as short term insurance is because your insurance needs in this regard will change over time.
The great thing about short term insurance in South Africa is that it caters to your changing needs, allowing you to cover your assets without a long-term commitment to one house, one car or one standard of living.
The amount of money that you will pay to your insurer at prearranged intervals is called a premium. This amount will be worked out according to your individual risk profile. For example, if you want to insure your car, your insurance provider will take into consideration your age, gender and driving record, as well as the value of the car and even where it is parked during the day and night. These factors will determine what premium you should pay; the greater your risk profile, the higher your premium will be.
There are more than 100 short term insurers in South Africa. When looking for an insurance provider, it is recommended that you get as many quotations as possible. Compare the monthly or annual premiums you’ll be required to pay, evaluate which insurer offers a better excess fee on claims that you may lodge and find out if all your established risks are covered by the policy.