How to save on your short term insurance

Short-term insurance, generally speaking, refers to the cover for possessions; such as your car, your home and its content (furniture, televisions, appliances, etc.) as well as portable possessions (laptops, jewelry, cellphones, clothing, etc.). This cover applies to either the loss of a specific item or against a particular event over a period of time.

As opposed to ‘long-term insurance’ (examples of which are life insurance, disability insurance or funeral cover) these types of insurances are considered ‘short-term’ because they are more flexible and can change every few years, and they usually should! Every time you buy or replace valuables, move home, perhaps buy a new car, or even renovate your house. With these changes, you should consider reviewing and updating your short-term insurance policies to ensure you’re covered and paying the right premium.

It’s worth noting that your cover and monthly premiums are influenced by circumstances such as your age, gender, address, claims history and overall risk profile, which can fluctuate over time.

By its very nature short-term insurance is most effective when you review and update it on a regular basis, and getting the most ‘bang for your buck’ means doing some housekeeping. The good news is, this extra leg work can save you in the long run! So how do you save money on your short-term insurance?

See our tips below:

  • Update your listed possessions

Chances are you have bought something new or replaced something since you initially took out your short term insurance. You may even still be paying for items that you no longer have, or don’t work anymore! In this case, consider removing them from your policy or selecting a limited cover option. It may even be worth choosing a higher excess fee, which will significantly reduce your monthly premium.

  • Weigh your excess against your premiums

This brings us to our next point – there are different options available to you when it comes to your ‘premiums’ (the amount you pay towards your insurance per month) and your ‘excess’ (the amount you have to pay in if and when you claim). A lot of money can be saved on your premium by dropping your excess, but this means you’ll need to fork out more in the case of a claim, so ensure you have spare cash set aside to replace or repair an insured asset if need be.

  • Reduce your risk profile

Most insurers base your premium on your risk profile – the higher your risk, the higher your premium. This can be lowered through improving your home security and parking in a garage rather than on the pavement, for instance. Your risk profile can also be positively impacted by improving your credit score.

  • Consider new pay-as-you-use insurance offerings

Due to the lockdown, many people have naturally reduced their risk anyway, because they are working from home more – making theft and loss less likely – or they drive less regularly. If this is the case, your premium should go down.

Out of this new set of circumstances, some insurers are now even offering ‘usage-based’ insurance! These are tailored to distance driven, for example.

  • Cut any frills or extras

If you’re really looking to save, you could even consider cutting the nice-to-have extras. Take a closer look at the fine print of your short-term insurance and consider canceling things like; the car hire for when your car might be in the shop or the accommodation for if you break down. Just make sure you understand the impact this could have on your experience when things might ‘go south’ and plan around it.

  • Talk to the experts

Insurance can be complicated and confusing, and sometimes it’s just better to leave it to the experts. For instance, you don’t want to move into under-insured territory in your attempts to save on your premiums. TVC can offer you advice tailored to your specific needs, interests and budget! Contact us today.  

By its very nature, short-term insurance should be reviewed and updated regularly to ensure you’re not paying any more than you should but that you’re still sufficiently covered. While the above tips can offer broad guidance, anyone looking to make major changes to their insurance policies should consider speaking to an expert to receive professional advice tailored to their specific situation and needs to get the best out of the options out there!


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