Check Your Cover First Time Insurer

A person initial steps into the word of insurance is usually quite confusing. The Internet is a valuable resource which should be used to research the different insurance companies. Its especially difficult for young adults who have just bought their first car or moved into their first house or apartment. The correct type of cover to purchase is not an easy decision.

The options available include:

• comprehensive cover

• third party

• fire and theft

• and third party only

Once a person  understand what cover they require they need to decide whether to go direct of through a broker. There are benefits to both, but going direct has greater benefits for young adults as it is more suited to their requirements.

The direct route offers the following benefits

• Cost savings

• Time saving

• Direct access to your insurer

It is crucial to research the price difference between the different cover options. Make sure you understand if you get money back or reduced premiums for not claiming on your policy. Also look at the added benefits such as roadside assistance and emergency services. Another important thing to remember is to not under insure household items. it will bite you when you need to claim. Work out the true value of the items that are to be insured.

Lets look at an example:

Case study:

• Woman ( late 20's)

• Lives in secure apartment complex in Northern JHB

• Apartment furnished with appliances and furniture

• Drives 2002 popular small car

In this scenario her premiums for a combined car and apartment policy will be in the ballpark of R605 per month, including the added benefits of emergency services and roadside assistance. With this premium she will have R90000 of cover for her possession. If she ups here premium to R639 her possessions will be covered to the tune of R130000.

As can be seen from the above example, it is key to understand the true value of your possessions as a small increase of just R31 per month could save you a lot of heartache in the future.