Back to blogUpdated · 1 min read

Short-term insurance

Short-term insurance is insurance that you take out to cover you against financial losses you could suffer due to sudden and unforeseen events.

What is the difference between long and short-term insurance?

The easiest way to distinguish between the two is if the contract is insuring a life event relating to a human being, like death, disability, or retirement, it is long-term insurance. Anything else would be regarded as short-term insurance.

What are the main types of short-term insurance?

Common types of short-term insurance are car insurance, medical insurance, building insurance, household contents insurance, single items insurance, and personal liability insurance (where your insurer will reimburse you in certain instances where you are held legally liable for damaging someone else’s stuff). Other types of short-term insurance include pet insurance, business insurance, and travel insurance.

You might also like

Definitions

Excess

Your excess is the amount of money that will come out of your pocket when you make a claim. Think of it as the contribution you have to make; your insurer will then pay the remaining balance.

1 min read
Definitions

Average

Average is when your claim’s payout is reduced by the proportion (%) of how much you under-insured your stuff by.

1 min read
Definitions

Premium renewal

Premium renewal is when your insurer updates your premium to reflect the changes in their perception of your riskiness since your last premium renewal.

1 min read