No tricks, just treats - taking the fright out of everyday insurance

It's October, the season of carved pumpkins, scary costumes and kids trick or treating, all in the name of Halloween. What has this got to do with short-term insurance? Quite simply, for many people insurance is like the boogey man: you can't see it but you know it's there and the thought of it scares you just a little.

Insurance can seem downright terrifying when you think of hidden clauses, unexpected losses, unaffordable excesses, underinsurance and even rejected claims.

There is also a prevailing belief that insurers don't want to settle claims, and that the monthly premiums you pay are a waste of money. In our current economy with financial pressure on so many consumers, this really is a scary thought.

But the easiest way to make friends with insurance is to get it right from the start. Follow the basic rules and you'll find that insurance definitely can be less tricks, more treats!

Here are our four go-to practices for ensuring a positive insurance experience:

Work with a broker for no nasty surprises

As tempting as it may be to go direct to an insurer and cut out the middle man, working with a broker takes all the guess work out of your insurance policy. It also allows you to clear up any confusion you may have around your cover, ensure that you're not over or underinsured, make sure that any lifestyle changes are correctly recorded and your covered adjusted as necessary, and help you to claim should the need arise. The parts of insurance that leave you breaking out in a cold sweat are magically taken care of when you have a broker on your side.

Slay the paperwork monster

Everybody hates doing it, but keeping your paperwork up to date is the single most important thing you can do to take the fright out of insurance. Treat your policy schedule like a living document where you notify your broker immediately of any changes. Outdated details can see your claims rejected (and there's nothing more horrifying than that).

Understand the ghost that is your insurance excess

You diligently pay your premiums every month but then years later, when it comes time to claim, you're hit with an excess that appears out of thin air like a ghost. Yes, you forgot about the fee you have to pay along with your claim, and that can leave you wanting to run for the hills. Your broker can help you choose the right excess level: a higher excess lowers your monthly premium but increases your out-of-pocket cost during a claim. A lower excess does the opposite. 

Don't be haunted by policy exclusions

Every insurance policy has exclusions. Those are the conditions that your insurer simply won't cover. The exclusions on your policy are normally contained in the fine print and therefore easily overlooked. Ask your broker to highlight key exclusions that are relevant to your cover. Don't wait until it's time to claim, only to find out that you can't. Get to grips with the fine print and know the true extent of your insurance cover.