Expensive SA Inusrance Myths - Part 3 of 3 |
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June 21 - We've looked at a couple of costly myths regarding insurance coverage in South Africa, but none costs the country as much as this final fallacy: the belief that buying insurance is a rip-off and that the minumum coverage is adequate. This idea is widely held by a number of otherwise intelligent and prudent South Africans, and it can end up costing you a small fortune. We sometimes get emails where people voice their lack of trust regarding the insurance business, to such an extent that they're willing to risk their financial security. The one you need to look at is your liability insurance if you own a property that is either commercial or residential. If another person is injured on property that you own your liability insurance can save you a huge expense. You also need liability coverage when you drive a car. If you seriously injure another driver or pedestrian you could find yourself liable for that person's medical expenses, and it could ruin you financially. Make sure that you have enough liability coverage. What is enough? Well, you need an amount that is equal your net worth. Your net worth is what you own less all your outstanding debts. If your net worth is R300,000 then make sure your car insurance and your homeowner's insurance covers you in terms of liability for R300,000. If your profession places you at risk for being sued, say because you are a doctor or lawyer, then you should consider getting more liability insurance. Shop around for the best rates, and consider going direct to an insurance company. Dial Direct SA for instance makes it easy to get quotes and buy your coverage by filling out an online quote. You could be done in minutes and a small boost in your liability coverage could save your entire nest egg down the line. Related Insurance Articles: * Low-Cost Insurance Product Launched * Dial Direct South Africa Covers Far More Than Cars * How To Avoid Insurance Scams * Three Simple Ways To Lower Your Insurance Costs * How To Shop For Car Insurance In South Africa * Another Costly SA Insurance Myth - Part 2 of 3 * Expensive SA Insurance Myths - Part 1 of 3 * A Small Saving With Insurance Premiums - What It Really Means 
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| 3/14/2010 7:05:47 AM | |||||||||||||||||||||
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