What is short-term insurance?

Short-term insurance covers the loss of a specific item or against a particular event over time. Long-term insurance, on the other hand, generally refers to ensuring the life of a person. Short-term insurance is flexible and can be changed as your circumstances do.

What is covered by short-term insurance?

Short-term insurance offers the reassurance that your possessions are always safe without being tied to life-long commitments.

Items covered by short-term insurance include your car, household objects, electronic equipment like cellphones, building insurance, etc.

  • Homeowners or buildings insurance is the insurance of your home building itself against damage.
  • Motor vehicle insurance is available in different tiers that can cover your car against all or some of the following: damage, fire, and theft.
  • Household contents insurance cover the contents of your home against damage and theft.
  • All risks insurance covers the belongings you carry around, such as cell phones, cameras, jewellery, etc.

Understanding the terminology

There’s no need to feel overwhelmed by the different words used relating to short-term insurance.

A premium

A premium is a monthly payment to your short-term insurance company for the assets covered. This amount often increases annually. Specific criteria determine your monthly premium for short-term insurance based on the precautions you take to protect your possessions, such as parking your car in a locked garage within a security complex or fitting an alarm and tracking device in your vehicle.

An excess

This is an amount your policy doesn’t cover that you will need to pay towards the loss or damage to your property. The excess amount is generally stipulated in your contract and can’t be changed without your knowledge. Often, you can lower your excess by increasing your monthly premiums.

Personal liability cover

This form of short-term insurance covers a third party suing you in your personal capacity for financial loss, injury, or death. Legal costs, medical expenses, loss of income, pain and suffering, and restoring damaged property are covered by personal liability cover.


Your short-term insurance policy will include a list of conditions where the insurance company won’t pay for your damages or loss.

Shop around

When choosing short-term insurance plans, it is a good idea to request several quotations based on your specific needs. Compare at least three different quotes from three different companies and find one with the most affordable premiums and excess payments combined with the best benefits.

Get Undercover

Undercover Insurance has an extensive track record of service excellence. If you would like to know more about our short-term insurance services, contact a representative from Undercover Insurance today.

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Claims: claims@undercover.co.za

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