What’s the Buzz Around Insurance You Can Pause?
You’ve probably heard that you can’t pause your insurance. Luckily, that is no longer true. Find out how a new type of insurance company gives you insurance you can pause.
Can You Pause Your Insurance?
When you Google “insurance you can pause”, the answers that come up can be demotivating. Some pages say you cannot pause or freeze your insurance unless you cancel your insurance policy altogether. This would leave you without essential coverage and financial protection.
Others say that some insurance companies may allow the suspension of your insurance coverage under extenuating circumstances, but that pausing insurance isn’t possible. The good news is, in South Africa, this is no longer true. Our country’s insurance laws allow insurers to extend the ability to pause cover to customers.
How Do South Africa’s Insurance Laws Make Pausing Insurance Possible?
In America, comprehensive cover for your vehicle is compulsory by law. All vehicles must be insured and driving a vehicle without comprehensive insurance is illegal. This, of course, means there can never be a time that your vehicle isn’t insured, making pausing your insurance nearly impossible.
Some states will allow you a reduced premium for limited car insurance when you go on holiday. In South Africa, however, insurance is not obligatory. This means, since cars don’t have to be insured, that an insurance provider can take the opportunity to offer discounts or the ability to pause your policy.
How Insurance You Can Pause Works
Your ability to pause your insurance will depend on the insurance provider you have an active policy with and how their cover works. If you don’t have comprehensive car insurance yet, it may be a good idea to compare your options before choosing.
Cheaper car insurance that covers less may be preferable if you need affordable car insurance. An AI-based car insurance offering might be the one for you if you don’t want to spend time on the phone to get your insurance. Each auto insurance policy will detail the terms and conditions of your cover in the policy documents.
Traditional policies will, for the most part, not allow you to pause your insurance. They may allow you to pause your cover and pay a reduced rate for your insurance under certain circumstances or may allow a payment holiday. But usage-based auto insurance is changing all that.
Thanks to InsureTech, which is insurance through mobile applications and AI technology, you can access super-fast cover that is pausable. When you get insurance through an app, you might be able to do the following, depending on the insurer:
- Get insurance cover almost instantly on the mobile app without lengthy phone calls.
- Pause your insurance at any time, making this a unique version of usage-based insurance where the insured chooses to pause if they aren’t driving their vehicle or if the need arises.
- Cancel your insurance at any time.
- Claim on the mobile app.
What Are the Benefits of Insurance You Can Pause?
The ability to pause your insurance can offer advantages and risks. Here are two of the biggest advantages:
1. Save Money. If you take a break from insurance coverage, the most obvious advantage is financial since you would pay a lower premium or possibly even no premium at all.
2. Convenience & Control. Thanks to mobile apps offered by InsureTech companies, your cover is now in your control to a greater degree. Instead of having to request a payment holiday or cancel your cover when tough times hit, you can now click a button and pause your cover. It’s convenient and empowering.
What Are the Risks of Pausing My Insurance Cover?
Pausing your cover altogether leaves you exposed to common perils and risks that can lead to financial problems. Having an auto policy that is active is a great way to reduce the risks of these perils.
Many InsureTech companies allow a reduction in your premium when you pause some elements of your cover. This safeguards you against risks that aren’t related to accidents, such as theft or a natural disaster. If anything happens to your car while your cover is partially paused, you won’t need to pay the property damages or repair costs.
Accident benefits and accident cover are most often the element InsureTech companies will allow you to pause. A new generation auto insurer understands how risky it is to have no cover at all, but many still give you the control. They may allow you to pause your cover in its entirety or even to cancel your policy at the click of a button.
Who Offers Insurance You Can Pause in South Africa?
InsureTech companies include the likes of Pineapple Insurance, Naked Insurance, JaSure, Ctrl, and MiWay Blink, but not all offer the ability to pause your cover. You can pause your insurance with Naked, JaSure, and Pineapple.
Do I Need Insurance I Can Pause?
Most insurers will offer a grace period of up to 30 days to allow you to catch up on premium payments if you are struggling financially. If your only concern is the financial costs, you could reduce your cover by getting third party liability insurance alone instead of a comprehensive plan. Your insurance premium should be lower, but then your cover will be lower, too.
You can also get insurance discounts from leading insurance providers. Insurance cover you can pause is not a necessity, but it sure is convenient. Comprehensive car insurance cover is important to protect you should an unexpected event occur, such as an accident or robbery.
Should I Cancel My Car Insurance to Save Money?
We do not suggest or advise cancelling your car insurance, since it leaves you exposed to risks. Your current insurance company may also charge you cancellation fees. Accidents and other insured perils can cost a lot, and most South Africans cannot afford to pay these large amounts out-of-pocket.
Insurance you can pause or downgrading your current coverage are better options. Are you looking for affordable car insurance? You can get a free insurance quote on our website by filling in the quick and easy form at the top of this page.
