Insurance Questions Answered
Insurance can feel overwhelming, but it doesn’t have to be. We’ve answered some of the most common questions about car, home, and business insurance to help you make clear, confident decisions.
Frequently Asked Questions
Still unsure about how short-term insurance works or which cover is right for you? Browse our most frequently asked questions below, or contact us for personalised advice.
Short-term insurance covers assets like your car, home, business equipment, and valuable belongings for specific risks like theft, damage, or loss. It differs from life insurance in that it protects physical items, and policies are typically renewed monthly or annually.
As an independent broker, we compare quotes from over 24 leading insurers in South Africa. We assess your risk profile, budget, and coverage needs, then recommend the most suitable option, at the best possible rate.
Third-party only covers damage you cause to others (cheapest, but limited).
Third-party, fire & theft adds protection for your car if it’s stolen or damaged in a fire.
Comprehensive covers all of the above plus damage to your own vehicle, even if you’re at fault.
Generally no—a standard comprehensive policy excludes mechanical or electrical failure (parts that wear out or break on their own). However, you may still get help with towing:
– Roadside assist/towing: If your policy includes roadside assistance, the insurer/broker can arrange a tow to a repairer even when there’s no accident damage.
– What is covered: Accident, theft, fire, hail or other insured events (and the resulting damage) are covered per your policy.
– What isn’t covered: The cost to repair/replace failed components (e.g., engine/gearbox/electronics) from wear, defect, or breakdown isn’t covered under standard motor. Consider a mechanical warranty add-on if you want this risk covered.
Two different things are at play:
– Car value (sum insured) falls with depreciation.
– Risk & costs often rise: parts and labour inflation, more expensive tech in new cars, higher theft/hijacking trends, and general claim costs.
Insurers price future risk and repair cost, not only the book value. That’s why premiums can go up while your vehicle value goes down.
View Momentum Premium Infographic for better understanding
The average clause reduces a claim if you insure an item for less than its true replacement value. Example: If your home contents should be R200,000 but you insure R100,000 (50%), you’re 50% under-insured—so a R20,000 claim may pay about R10,000 (less excess). Solution: review sums insured at least annually to match current replacement costs.
Payouts are based on replacement with the same or similar model at today’s price, minus any excess, policy limits, age/condition, or proof of ownership issues. If the same model now sells for R9,999, that may be the settlement (less excess). Keep your device insured for current replacement value, and keep invoices/IMEI records.
Under-insuring triggers average, meaning you only get a proportion of your claim. Prices change with exchange rates and inflation, so review annually: electronics, jewellery, bicycles, specialist tools, etc.
The excess is the part of a claim you pay. It helps keep premiums lower and discourages small claims. Policies may have different excesses (e.g., windscreen vs. theft) and additional excesses for young/inexperienced drivers or high-risk vehicles.
Common factors include:
– Vehicle risk: make/model theft risk, cost of parts/repairs, safety features, fitted trackers.
– Driver profile: age, claims history, licence years, regular driver vs. occasional.
– Use & location: business vs. private use, overnight parking, area risk.
– Cover choices: comprehensive vs. third-party, added benefits, trackers, excess level.
Choosing a higher excess can reduce your monthly premium (but increases your out-of-pocket at claim time).
Grid failure is a widespread, prolonged power system collapse (different from routine load-shedding). Many policies exclude grid failure completely, while some cover power surge or resultant damage under specific conditions. Always check your wording—coverage for surge/load-shedding/grid failure can differ.
A surge protection device (SPD) diverts excess voltage from spikes/surges (often after load-shedding) to protect appliances. Best practice is a Type 2 SPD installed at your main DB board by a qualified electrician (with a valid CoC), and Type 3 plug-in protectors for sensitive electronics. Some insurers require proof of correctly installed SPDs for surge claims.
Thatched roofs carry higher fire risk (spark ignition), maintenance requirements, and can be expensive to repair. Many insurers either:
– Charge higher premiums and higher excesses,
– Require risk improvements (e.g., lightning protection, fire blankets/sprinklers, chimney spark arrestors, distances from braai areas), or
– Decline cover entirely.
A broker can place thatch with specialist markets and advise on risk-reduction to improve terms.
Yes. Building insurance covers the physical structure of your property (walls, roof, geyser, etc.), while household contents insurance covers your belongings inside like furniture, appliances, electronics, and clothing.
Underinsurance happens when your sum insured is below true replacement value. If that’s the case, insurers can apply the average clause and only pay a proportion of any loss. We don’t assess values for clients—we can advise you to use an independent valuer/surveyor (for buildings, contents, or business assets) to determine accurate replacement costs.
What you can do:
– Arrange a professional valuation/survey and index it annually for inflation/exchange-rate moves.
– Keep an itemised inventory (with invoices/photos/serials) and update it after new purchases.
– Review high-value/specialised items (electronics, jewellery, tools, machinery) separately with the surveyor.
Your phone and laptop are normally items that leave your home regularly and therefore these items and any other items that leave your home regularly must be insured under the all risk or portable possessions section.
This covers professionals (consultants, medical professionals, brokers, etc.) from claims due to negligence, errors, or omissions. It protects your business and reputation if a client alleges financial loss due to your advice or service.
Contact us directly, we’ll help you gather the correct documents and submit your claim efficiently. Our team will guide you every step of the way and communicate with the insurer on your behalf to get a fair outcome, quickly.
Yes! We can review your current policy, compare it to better options, and help you transition smoothly. In many cases, we can secure better rates or more comprehensive cover, with no hassle on your side.
Secure Your Future Today
Whether you still have questions or you’re ready to take the next step, our team is here to help with personalised advice on life insurance.