Insurance assumptions that get you into trouble

You know the basics of your insurance policy: what it covers and what it doesn't, and how much your excess is. But how much of what you know is based on assumptions and how much on fact?

Life is busy, you probably read through most of your insurance policy when you first took it out...and not since then. It's easy, over time, to make assumptions about your lifestyle and how this is covered by your insurance.

However, these assumptions can land you in hot water when you need to claim against your insurance.

Here are 5 common insurance assumptions:

That item isn't worth listing

So called small-ticket home items often go unlisted in insurance policies, either because homeowners decide to cover small losses themselves or because they're too lazy to update their insurance policies 'for small items'. But small-ticket items add up, and in the case of a home robbery, personally replacing all those items at the same time can end up costing you a lot.  

Our advice: List all your home contents on your policy, no matter how big or small.

My home is secure enough

Assuming that your home has adequate security without assessing this against your insurer's requirements is a major risk. Insurers follow security trends and know what your home needs to prevent break-ins. Your insurance policy has minimum security requirements that you're expected to meet, otherwise you could be left having to personally cover home contents should they be stolen.

Our advice: Check the requirements of your insurance policy and make sure you meet them.

Comprehensive cover means I'm fully covered

Comprehensive cover doesn't always mean what you think. Policies have exclusions, limits and conditions. Wear and tear, mechanical failure, gradual damage, and certain weather events are often gaps in comprehensive cover.

Our advice: Make sure you know the extent of your cover and that all items are insured for the right value.

I don't drive that much

The theory that most accidents happen close to home is true. Research shows that 52% of car accidents occur within 8km of home, and more than 70% within 16km from home. How much you drive has nothing to do with your risk for being involved in an accident.

Our advice: Get comprehensive car insurance that covers you for everything you need while on the road for peace-of-mind driving.

My teenager doesn't use the car that often

Teen or young adult drivers are the highest risk drivers in a household. No matter how often they use your vehicle, they should be listed as a regular driver. Even 'every now and again' can be deemed as regular use. It only takes one miscalculation for an accident which, if the fault of an uninsured driver, can have disastrous consequences.

Our advice: List everyone who drives your car as a regular driver, regardless of the frequency with which they use your car.

The best approach when it comes to short-term insurance is to regularly review your policies, know the facts and don't assume anything.