Don’t miss out; or you could land up paying dearly
So that traditional school holiday season is almost upon us and some consumers might consider skipping their short-term insurance premium in order to use the money for something “more pressing”.
“Its not a good idea,” says Willem Smith, CE of Old Mutual iWYZE valuables insurance. “Its not a good idea at the best of times, because simply missing one month means that your cover will be suspended or cancelled and if anything should happen, you won’t be able to claim and will have to carry the loss yourself.”
Smith poses the following question: “Could you afford to replace everything lost in a house fire, just because you missed one single premium payment? I couldn’t,” he says. “And what happens if you’re involved in a car accident, and it’s your fault. Can you afford to pay for the damage caused to the other vehicle and the injuries to its occupants? I couldn’t. Ask yourself whether you, your partner or spouse could meet the cost or repairing a car or house damaged in a storm, like the freak storm that struck Gauteng in October.”
While it might sound trite coming from a short-term insurer, Smith says that your short-term insurance premium should be the first monthly payment made every month. “Many people don’t realize the potential cost implications of missing just one single short-term insurance premium.”