Life is full of surprises, and not all of them are welcome. Unexpected expenses, like a medical aid co-payment or a school trip fee, can throw your budget off balance, making it challenging to keep up with essential payments like your insurance premium. Most Short Term Insurers offer a grace period of 10 to 30 days to help you catch up, during which your cover remains active. However, failing to settle your premium within this window could lead to serious consequences for example the cancellation of your policy.
If you need to claim while you are in your insurance premium’s grace period, your insurer might require you to first settle the missed premium — or they could reject your claim entirely. That means you will have to pay out of your pocket for costs such as vehicle repairs, property damage, depending on the type of cover.
Cancelling your debit order is treated as non-payment. In most cases, your policy will lapse immediately, and you will no longer be covered. If something happens — whether it is an accident, theft, or an emergency at your property — you will not be able to claim.
If your policy lapsed recently, you may be able to reinstate your policy by paying the missed premiums and completing a no claims declaration document. However, this is not guaranteed — your insurer may require you to undergo a new assessment or provide updated information, and your premium could increase, especially if your risk profile has changed.
A lapse due to missed payments can make it harder and more expensive to get new insurance. Insurers may see you as a high risk, leading to higher premiums or even rejection of your application. Missed payments could also attract late fees or interest, and some insurers might report you to the credit bureaus — affecting your credit score and future loan applications.
Without insurance, you could face major financial losses. A car accident, home burglary, or sudden illness could result in unexpected costs that run into thousands of rands. With many South Africans already under pressure from rising living costs, skipping premiums might seem like a short-term solution, but it could leave you exposed when you need protection most. At Navigate, we have seen the long-term impact of lapses, and we are here to help you stay covered.
Unexpected expenses — like medical bills, school fees, or emergency repairs — can make it tempting to skip an insurance premium. But staying consistent with payments is key to protecting yourself financially. At Navigate, we can help you find affordable, tailored solutions that safeguard your health, assets, and income.
Protect what matters most — reach out to us today for advice you can trust.
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