CHECK THE COM­PLAINT RA­TIO

CityPress - - Business -

When se­lect­ing a short-term in­surer, cheaper is not nec­es­sar­ily bet­ter. When com­par­ing quotes, I dis­cov­ered quite a dis­crep­ancy in cover be­tween in­sur­ance com­pa­nies.

Some in­sur­ance providers had a high ex­cess, while oth­ers au­to­mat­i­cally in­cluded a 30-day car hire clause in the case of an ac­ci­dent.

When it comes to house­hold in­sur­ance, all-risk cover, which cov­ers items you may leave home with, such as a watch or lap­top, can be treated dif­fer­ently. Some in­sur­ers cover all risks, while oth­ers re­quire you spec­ify the items – so you need to make sure you’re com­par­ing like with like.

You also need to know that when you claim, you will be paid out. Be­fore sign­ing with an in­surer, study the Om­buds­man for Short­Term In­sur­ance’s re­port (osti.co.za) to find out how many com­plaints were re­ceived about your in­sur­ance com­pany.

The av­er­age num­ber of com­plaints re­ceived about an in­sur­ance com­pany is about three for ev­ery 1 000 claims.

In­sur­ers like OUT­surance and San­tam – at two com­plaints per 1 000 claims – have a good ra­tio.

A com­plaints ra­tio of 13 to 1 000 claims for King Price In­sur­ance, for ex­am­ple, would be a red flag. Even though many of those were found in favour of the in­sur­ance com­pany, it sug­gests that there may be a lot of fine print that cus­tomers are not aware of.

– Maya Fisher-French

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