Expensive SA Insurance Myths - Part 1 of 3 |
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June 1 - There are certain myths surrounding insurance that cost South African policy holders a fortune every year. In a series of articles debunking popular SA insurance misconceptions we will look at three of those myths in more detail. 1 - THE BENEFITS PAID OUT SHOULD BE THE SAME AMOUNT AS THE PREMIUMS PAID IN A lot of South Africans who own insurance policies pay premiums on them for years and years and never file a single claim. Some of these people then feel as though they are losing out financially because they are not utilizing their insurance. The problem here is in how you think of your insurance policy in the first place. One should think of insurance as protection against a huge financial disaster, as a remedy for a catastrophe, as opposed to an everyday umbrella for a few minor inconveniences. For example your homeowner's insurance is there in case your house burns down to the ground, because if that happened you would probably be unable to rebuild a new house without insurance. It is not there if a window gets broken in your house. So why would you agree to pay more Rands for an insurance policy with a low deductible, just so that you can get your insurance company to cover trifling costs that you could pay for on your own? Remember that if you choose a higher deductible it will save you a bundle - in fact, as much as 35% on certain premiums. Look into direct insurance companies in particular, such as Dial Direct South Africa, and find out exactly how much a higher deducitble saves you. If you have a higher deductible for your insurance policy it will naturally prevent you from making too many claims. The more claims that you make the more of an insurance risk you become. Major insurance companies will then be less likely to offer you coverage in the future. If they do offer you a policy but notice that you've made lots of prior claims you will end up paying a lot more for that policy! Part 2, where we reveal another expensive Insurance myth will follow soon... Related Insurance Articles: * Three Simple Ways To Lower Your Insurance Costs * Expensive SA Inusrance Myths - Part 3 of 3 * How To Shop For Car Insurance In South Africa * Another Costly SA Insurance Myth - Part 2 of 3 * A Small Saving With Insurance Premiums - What It Really Means * Learn How To Lower Your Premiums * Santam To Launch New Home Insurance Product * Insurance In South Africa Set To Become More Affordable 
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| 3/14/2010 7:05:48 AM | |||||||||||||||||||||
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