Your short-term insurance: common myths busted

There are a lot of misperceptions surrounding short-term insurance. Often, common misunderstandings about insurance prevent people from buying cover, costing them much more in the long run.

To help you separate fact from fiction, we've busted the top 5 myths around short-term insurance.

Myth 1: Short-term insurance is too expensive

This is easily the most common misconception people have around insurance. Short-term insurance is often more affordable than people assume, especially when weighed against potential losses.

When you work though an insurance broker, your budget and insurance needs are carefully balanced to ensure you don't pay more than you can afford for the cover you need.

Myth 2: You don't need insurance if you're careful

No matter how cautious you are when out driving or securing your home and property, you can't control external factors like natural disasters, theft or vehicle accidents that aren't your fault.

Contrary to what most people think, insurance is not about living in fear and expecting the worst to happen, but rather providing peace of mind by ensuring that you're prepared for unexpected incidents.

Myth 3: Insurance companies never pay out

This is another myth that many people believe despite the fact that insurance companies pay out millions in claims across South Africa every day.

The fact is, insurance policies only don't pay out when there is a problem with either the incident that occurred (i.e. the specific terms and conditions of your policy for that event were not met) or the scope of the cover you have (your policy does not cover that type of event).

If your policy is paid up and your insurance cover matches your specific needs and circumstances, covering most insurable events, the chances of your insurance claims being rejected are slim.

Myth 4: Short-term insurance only covers big incidents

It might come as a surprise to hear that you can also claim for 'everyday events' that occur in the course of a regular day. These are not restricted to major events, and include everything from a burst geyser to electronic damage as a result of lightning strikes.

Vehicle policies cover minor car repairs, and cracked or damaged windscreens - the excess of which is typically much less than repairing these vehicle parts yourself.

Always contact your broker first to see if you're covered for an event before spending money you don't have trying to fix the problem.

Myth 5: It's better to save money than pay for insurance

Although your savings might be able to cover small inconveniences, the probability of them stretching to cover a sudden, high-cost event like your vehicle being stolen or a housefire razing your home to the ground, is highly unlikely.

Insurance spreads the risk and offers immediate financial relief.

As tempting as it is to skimp on insurance, these policies provide the safety net you need when life throws you a curve ball you didn't expect.

Consult with a broker to get personalised advice and insurance that works for you (without falling prey to the many insurance myths out there!).