Okay, you’ve just come back from a nice, fat holiday at the coast. You’re well-tanned (but slightly thirsty if you were in Ballito during the water shortage!), well-rested BUT…its set you back a little more than expected – a couple of thousand Rand more than expected!
So much so, that the debit orders have started bouncing. One of the debits which bounced was your car and home insurance policy.
So what happens if you have a claim but forgot to pay your last premium?
Don’t worry… You’re still covered and have a valid claim – as long as you pay in the missing premium!
This is how it works:
Remember that with car and home insurance, you pay your monthly or annual premium upfront and then enjoy insurance coverage for the next 30 days (or next year if you pay annually).
Let’s say your debit order date is the first of every month. The first rolls around and there’s no money to pay the debit (so it ‘bounces’).
Now some companies will automatically schedule a re-debit of your account 15 days afterwards. Other companies prefer to arrange a double debit on the next scheduled debit order day, i.e. the first of next month. If only the one debit order goes through, then the debit is used to clear the older of the two debts.
If the second debit order bounces then your cover is cancelled from the date that the first debit order bounced. So for example, if your debit order for the month of January bounces on the 1st, and your repeat debit order on the 15th also bounces… You then have no cover as from the 1st of January.
Why don’t you take a minute to run through your current schedule right now (seeing as the year is still a puppy!) and see how this relates to your specific cover?
After all, you don’t ever want to end up with a claim being rejected simply because you weren’t aware of the timeframes relating to payment of premiums, do you?
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