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  • Mel da Silva

All about insurance

Updated: Feb 10, 2021


What is insurance and why do I need it?

Insurance can be best described as a way to protect yourself from unexpected losses to your property and assets. This is different to assurance which provides cover for your life and illness cover or medical aid.

How does it work?

In essence all insurance works in the same way. You pay a once off, monthly or annual premium and if something happens for which you paid the premium and have cover, then the insurer will put you back in the same position you were before the incident happened. They will do this by paying you out the value of your loss or by replacing whatever it was that you lost if covered.

What is an excess?

In order to prevent many small claims most insurers will impose an excess or first loss principle to any claim. What this means is that you will have to pay the first amount of the claim and only thereafter will the insurer pay out. If the insurer is settling in cash they will simply deduct the excess from the amount that you pay, but if they are paying for repairs or replacements you may have to pay it at the service provider.

TIP: in the event of a claim for repairs to your motor vehicle you can often negotiate a discount with the panel beater that may cover your excess. This is not always the case but certainly worth a try.

Why do I need insurance?

When you buy something with a loan you usually need to insure it in terms of the loan contract.

Types of insurance

There are different kinds of insurance for different kinds of property. Watch out for more info over the next few days.

To read our blog on car insurance click here

To read about everything else you can insure click here


Our thanks to the team at In2Insurance for their help with this post. In2Insurance provide a comprehensive range of insurance product and great service. I personally use them.

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