There’s a saying that’s floating around the insurance industry… Incorrect details = incorrect cover. Basically, what it means is that your info builds your policy and so if the info is wrong, then the policy’s wrong. More than that, the premium that you pay is calculated using this info, so you could also be paying the wrong monthly fee.
Why does all this matter?
It impacts the premium that you pay
All the info that you give your insurer goes into what’s called a ‘risk profile’. Your profile’s basically a little story about you (the owner of the thing) and the thing itself. This story helps your insurer calculate your premium. If you give the wrong details about yourself or the valuable item that you’re covering, then your policy will be wrong.
So, for example, your Ford Kuga is a 2009 model and you’ve insured it as a 2010 model. Based on the year of the car that you’ve provided, you’ll pay a premium that covers a slightly newer (and therefore more expensive) model. The difference of a year might sound silly to you, but paying for the wrong cover based on the difference of just 1 year is the same as if it were 10 years.
It impacts your claims
Apart from paying the wrong premium, providing the wrong details could also mean that any of your future claims could be rejected. And that’s true even if the reason why you’re claiming isn’t your fault at all. Like if you put in a claim for a house break-in and your address is different because you moved a few months ago and the break-in happened at your new place. Now, apart from the fact that it would be an awkward conversation, your claim would absolutely be rejected. And then not only will you feel awful because your home was broken into, but you’ll feel even worse about having paid for insurance that won’t pay-out when you need it most.
The most common insurance details that people forget about:
- The regular driver. The regular driver is the person who drives the car most frequently, and if you’ve started letting your uncle, friend, or gardener drive your car more often than you, then you need to update your policy.
- A new gadget. This happens around birthdays and the festive season when people get new toys and forget to mention it to their insurer.
- New address. It can be stressful to move… So stressful that you might forget to tell your insurer about your new address where all your insured stuff’s kept.
- New parking spot. You might think that updating your risk address only applies to homeowners who’ve household insurance, but it also applies to car insurance because where you park your car affects your risk profile.
Look, life gets in the way of this kind of admin. It happens, but the good news is that it only takes a few minutes over the phone or a quick email. Also, keeping your info updated is part of the agreement you enter into when you get insurance. It also makes sure that you’re properly covered and even better than that, it could even save you major moola on your premium.
Article credit https://www.insurancechat.co.za/2019-08/why-you-need-to-update-your-insurance/