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Insurance for the car, home & business

Short-term Insurance Important Information

Find the correct Short-term Insurance Provider What is a false claim and what is the repercussions? How is a claim handled if you are under-insured? How is a claim handled if you are over-insured? Ten steps that could threaten your short-term insurance cover. How to manage your risk: Factors that can influence your car insurance premium. Factors that can influence your contents insurance premium

Find the correct Short-term Insurance Provider

It’s very important to choose the correct service – and product provider! Too many people buy short-term insurance advertised with gimmicks of cash back and cheap premiums. Most of this direct insurers only sell one brand of product and don’t compare the important factors of insurance with other quality big brand providers but preferably choose to only compare premiums and other gimmicks that look very attractive to the uninformed users of financial services! Don’t fall for the gimmicks! Because you are searching online for a short-term insurance does not mean you have to buy a solution direct without receiving appropriate advice. Whether you prefer to find your solution direct or face-to-face, Plandirect offers you the opportunity to use the expertise of experienced financial advisors who can compare quality big brand solutions and find you a solution aligned to your unique circumstances, containing quality definitions for the important factors of a short-term insurance solution. If the financial planners finds you a solution that is very affordable and/or offers cash back at some time in the policy term it will be a bonus but you will have true peace of mind that the important factors of the contract, namely the description of benefits and excesses payable will be what you would expect and valid claims will be paid promptly!

What is a false claim and what is the repercussions?

You submit a false claim if you: Claim for an asset you never possessed, The value of the asset you are claiming for was worth less that the value of the asset you are claiming, and Give wrong information surrounding the circumstances of the event leading up to the loss.     If you submit a false claim you can legally be held accountable. You can be prosecuted and your cover can be cancelled. This could result that you can never get insurance again. It is procedure for most insurers to take legal action against clients submitting false claims. How is a claim handled if you are under-insured? If the sum insured under general insurance is expressed to be “subject to average”, and that insured sum is less than the actual value of the subject matter of the insurance, then any claim that is agreed under the policy will be reduced proportionally such "under insurance".

How is a claim handled if you are over-insured?

If you claim and you are over-insured, the insurer will only pay or replace the items at replacement value. If you for example, you insure your house content for R 200 000 but the value is only R 100 000, the result will be that if all your house content was stolen, you will only receive a payout of R 100 000.

Ten steps that could threaten your short-term insurance cover.

Submit claims for the real value of the asset! It is estimated that false claims submitted worldwide attributes to 5 % – 15 % of premium increases. If somebody submits a false claim he/she can struggle to find insurance in the future and it could lead to legal action being take against the person committing the fraud!   Disclose all material facts to the insurer. It is the duty of all parties to a contract of insurance to reveal all material facts to each other before it is concluded and prior to each renewal. The insurer trusts the information the applicants supply as correct and calculates their premium based on this information. If it is later found that the facts were not correct, the insured’s claim could be rejected or the policy could be cancelled. Don’t insure your child’s car on your name. Policy holders under the age of 25 normally pay higher premiums because there is a higher risk involved for the insurer. A parent that want to ensure his child has a cheaper premium and insures the child vehicle on his own name are acting wrongfully. The insurance must be in the child’s name. Previous claims. When a client is applying for car insurance, previous claims must be disclosed. If a client neglects to disclose previous claims his / her policy contract can be cancelled. Valid drivers license. A valid drivers license is required by law before anybody can drive a car. If an insured allows somebody to drive his car without a licence a claim can be rejected or cover cancelled. Conduct yourself in a reasonable manner. All insurance contracts expects insured clients to conduct themselves in a reasonable manner. Clients must take steps to prevent loss or damage, like not leaving their keys in a car or leaving valuable items on the seat of a car. Clients must also maintain their vehicles to prevent accidents from happening. Drink and drive. An insurer will decline a claim if it is found that the client was the cause of the accident and he exceeded the legal alcohol limit. It is also unlawful to drive under the influence of alcohol. Security measures If a insured’s insurer expects his /her to have an approved immobiliser in his vehicle or to have a tracker device in his vehicle, a claim will be rejected if this is not the case. Necessary proof of installation must be sent to the insurer. In some cases insurers can require you to activate a tracker device before you will enjoy cover. Unpaid premium Pay your premium when it is expected. Ensure you have enough money in your account or a claim could be rejected if you have unpaid premiums. Unsafe vehicles If your vehicle’s tires are worn and this leads to an accident, your insurer will most probably not pay the claim. It is your responsibility to see that your vehicle’s tyres are in a good condition.

How to manage your risk:

It is important to revise your policy at least once a year. Here is a few guidelines to ensure that your cover still reflects the value of your assets: Pay for the assets you own. Remove items that are not yours anymore. Remember to add presents, new items you bought or items that you replaced. Adjust the value of your vehicle. Vehicles are normally insured at market value that decreases with time. Adjust the insured amount of the vehicle yearly. Protect your assets. Ensure that your vehicles and home complies to the necessary security requirements. Don’t forget to activate your alarm. This happens often and in this case an insurer can reject a claim. Manage your no-claim bonus. You can protect your discount by considering carefully before you claim. You must decide what holds in the biggest advantage for you: to protect your no-claim bonus, or the amount that the insurer must pay? Ensure you have comprehensive all risk cover, The all risk cover consists of different sections. Clients often select only one or if this is your need!   two sections and then incur big losses for assets that they can’t claim. Insure your cellphone for the correct amount. With so many specials available, most people regularly upgrade their cellphone. Remember to adjust your cover accordingly. Regularly update your personal information. Remember to inform the insurer of address and contact detail changes.

Factors that can influence your car insurance premium.

Where are your vehicle parked? If your vehicle is stored in a locked garage within an security complex, you will most probably pay a cheaper premium than the person parking his car out in a busy street. Residential area? Based on statistics the risk of theft and/or high jacking are higher in some residential areas than other. If you live in a higher risk area your premium will most probably be higher than someone living in a lower risk area. Who normally drives the vehicle? Based on statistics younger drivers tend to make more accidents than older people and female drivers make less accidents than males. Being an older female has its advantages! What is your vehicle used for? The premium will be cheaper if the vehicle is mainly for private use compared to using it for business purposes; however the premium will be higher for a student using his car for private purposes, visiting friends every evening compared to a mother using it for private purposes, fetching kids form school every day! Security? The insurer will stipulate what the minimum security requirements is, based on the type of vehicle you drive and the area you reside in. If your security requirements are more than expected from the insurer you could qualify for discount on your premium. Insurers normally gives discount for immobilisers, ‘gear locks’ and tracking devices installed. Type of cover? Comprehensive cover is the most expensive, followed by limited cover (third party, fire and theft) and lastly, the cheapest option is cover for liability to other parties only (only covers damage to other parties property). Extras? If you install non-standard features such as air conditioning, sunroof, radio/cd player, leather seats, etc. in your vehicle, an additional premium could be charged for the extras. Voluntary excess Most insurers will decrease your monthly premium if you are willing to pay an additional amount to your basic excess payable for a claim. A higher excess means a cheaper monthly insurance premium.

Factors that can influence your contents insurance premium

Residential area: If you live in an area that the statistics indicate is a higher risk for breaking in and  theft, you will pay a higher premium than somebody living in a lower risk area. Roof and wall construction: If your house have a non-standard roof or walls, you will have a bigger risk of damage and your premium will be more. Security: The insurance company will stipulate what the minimum security requirements are based on the area you reside in. If you have taken more security measures you could qualify for a cheaper premium. Exclusions: In general your house content are covered against fire, theft, wind and storm damage. If you exclude any of last mentioned covers your premium could be reduced. Claim-free years Somebody that takes out a short-term insurance policy for the first time will pay more for their insurance compared to somebody that have a few years of claim- free insurance. Discount is calculated on the number of years that you have been insured without claiming.
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