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Save now, pay later? Cancelling your insurance premiums might save you money now, but this could cause serious problems in the future, highlighting, even more, the importance of a personal insurance broker to help adjust your package to your personal needs. Insurance providers recognize the financial strain lockdown has put on their clients and are adjusting their policies and even paying back some premiums in response to provide relief.

Tough economic times could mean that the household must take stock of monthly payments and make tough decisions on cutting down on some expenses. Insurance policies are the first to be scrapped since they are often viewed as luxury items. However, it seems that even if one saves money on monthly premiums, it is seldom a good idea to be without cover and protection, exposing your loved ones should something happen to you. Estimates state that motorists claim every 3 to 5 years from their insurance, and that there is no guarantee that you will not be involved in a crash.  Canceling vehicle insurance would expose one to even more financial risk with South Africa’s high accident statistics.

It is important to evaluate other means of saving before canceling essentials like insurance. If you cancel your policy and start a new policy when your circumstances change, you could end up paying higher premiums or be excluded from certain benefits, depending on your age and health.

Good habits as a result of economical driving also result in the longevity of your vehicle, therefore as economic pressure builds, individuals should not abandon good driving behavior. There are many new means of saving to be taken into account during lockdown:

  • Motorists have been given some relief with petrol price decrease at the start of the year.
  • Implementing fuel saving techniques could save you up to 20% of your monthly fuel expense.
  • Ensure that your insurance premiums accurately reflect your vehicles book value annually.
  • Investigate the cost-savings of combining your insurance with others in your household.
  • Most insurance providers will help you find a way to restructure the policy to reduce the premium.
  • Some insurance providers will allow the policy holder a payment break for a few months and make up in the shortfall afterwards.

It is called an accident because no one plans on having one, wouldn’t you rather save money and be covered in such event than be left unprotected before considering all your options? Contact your personal insurance broker specialist today to assist you in evaluating and restructuring your insurance policies.