SA Car And Home Insurance Risk Factors |
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01 May - South African short term insurance providers may refuse to issue you with a policy or may cancel an existing policy if you fall into a high risk category. What are these risk factors and how can you avoid them so that you can still get affordable car and home insurance in South Africa? The major risk factors are moral risk, geographical risk, and uninsurable risk. Let's look at each one in turn: MORAL RISK - If you have defrauded an insurance company by filing false claims in the past then this will certainly hamper your efforts to get coverage from other providers. While there is no official "blacklist" maintained by SA insurance companies they can share databases. If you have a bad prior record these companies may refuse to insure you. GEOGRAPHICAL RISK - Through no fault of your own you may present an extremely high risk to insurers simply due to your living arrangements. If your house is constantly endangered by floods or veldt fires or other natural disasters then it might become very expensive to insure your home and contents. If you live in a high-crime area where cars are stolen and houses are robbed then your premiums are going to go through the roof, or you might be refused a policy. UNINSURABLE RISK - Some clients are uninsurable because doing so would be too risky based on their recent record. If you're involved in multiple car accidents over a short period of time your policy may well be cancelled. The insurance companies will pay out initially but eventually they will put a stop to it. Remember that short term insurance is not offered to everyone, nor does everyone qualify for the same rates in terms of premium costs. The fewer risks you pose to an insurer the cheaper your short-term insurance costs. Related Insurance Articles: * SA Insurance Study Shows Dialling Direct Is The Future * Old Mutual Posts Strong First Quarter Results * Sanlam Set To Offer Direct Life Insurance * SA Insurance Companies Beset By Fraudulent Claims * Gripes About South African Life Insurance On The Rise * South African Home Insurance Tips * Car Insurance Coverage For Repairs - The Facts * Less Than Half Of South Africa Has Car Insurance 
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| 3/14/2010 7:05:02 AM | |||||||||||||||||||||
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