Insurance is the protection people have against unforeseen circumstances. Different types of insurance are available. Insurance companies offer to pay for loss and damages, according to an insurance policy. In return they charge monthly payments from the insured. Insurance agents have knowledge about risk factors and items’ value, so they can compile accurate policies.
Popular Insurance Services Include:
Home insurance
South Africa poses many risks for buildings and building content:
- Weather such as excessive rain or hail can damage buildings
- The country’s high crime rate means there is a possibility of burglaries
Home insurance covers the result of these and other calamities. Damaged or stolen items are either replaced, or their worth is paid out to the home owner.
Vehicle insurance
South African roads are filled with careless drivers who cause accidents and high-jackers who steal or damage cars. Vehicle insurance protects car owners from the cost of these situations. If a car is damaged, but covered by an insurance policy, it can be repaired at the insurer’s expense. If a car is stolen, it can be replaced, or the car’s worth paid out to the owner.
Life insurance
Life insurance is a necessary expense in South Africa, especially if an individual is the bread winner of a family. This is necessary because:
- There are many dangers that can take someone’s life unexpectedly
- Health problems can result in death
A life insurance policy supplies capital to a deceased’s family. They can invest or use this capital to sustain them after the person died.
Business insurance
South African businesses are at the mercy of many risks. Insurance policies help the businesses survive when challenges arise. Aspects that can be covered in an insurance policy include:
- Money theft
- Public liability cases
- Breakdown of machinery
- Fleet insurance
- Theft of merchandise
Loans
Many insurance companies offer loans. As an authorised financial services provider in South Africa, these companies offer smaller loans than banks, and clients have various repayment options. This is the ideal answer when you need capital for unforeseen circumstances.
5 Tips when Hiring an Insurer
1. Review their customer service
You may spend many hours on the telephone with your insurer. This is necessary to sort out details about your policy. Make sure the company has an excellent customer service department, so you’re not met with unfriendly service when you need help the most.
2. What is the insurer’s speciality?
Some insurance brokers focus on a certain type of policy. Some only insure women and others are specifically structured for vehicle insurance. Pick a company who is knowledgeable about the type of insurance you need, so you know you get effective service.
3. Enquire about claim procedures and timelines
Make sure you are aware of claim procedures from the first day you have your policy. On the day when you need to claim, you don’t want to struggle to obtain forms or determine the best course of action. You should also ask about how long claims take before being resolved, so you can plan accordingly if vital items—such as a car—was stolen.
4. Keep your policy updated
If insured items are sold or upgraded, you must update your policy accordingly. Your insurer can only pay out what you have covered in your policy. If you purchased a new car and it’s not added to your policy, you’ll have to carry the costs yourself if it’s damaged.
5. Double check payments when you switch service providers
If you decide to switch from one insurer to another, make sure the process is handled correctly. Most companies offer to communicate with your old insurer and make sure the previous payments are stopped. Confirm that this is done in time so you don’t have to pay two insurers for the same service.