CHECK THE COMPLAINT RATIO
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