Never Penny Pinch with Insurance

While you, like most South Africans, may be feeling the pinch due to inflation and increasing interest rates, petrol prices, food prices, bond repayments and so forth, and are looking for different ways to cut spending costs, do not be tempted to cut or reduce or miss paying your insurance premiums.

For many South African families feeling the economic pinch, one of the first ways that they try to save a few pennies is to reduce the amount of car or household insurance coverage they are currently insured for, or cancel their policies outright or even skip paying their monthly premiums completely.

Unfortunately while all of the above may appear as the easiest and most obvious of short-term money-saving solutions, they are in actual fact anything but. Think about it, the peace of mind you might gain from saving some money, will be offset knowing that you may no longer be comprehensively insured.

There are many insurance companies out there that may deem your existing insurance policies null and void if you miss even one monthly payment, knowingly or unknowingly. This could obviously prove catastrophic should you be unlucky enough to experience a burglary, accident, theft or damage to property.

Even by reducing your monthly insurance premiums, in the unfortunate event that you have to lay a claim with your insurance company, you may find that you are under-insured. This means you could well be out of pocket for more than you saved by 'shaving' your premiums to save money in the first place!

The point is that although most South Africans are having to 'tighten their belts' financially, insurance should be the last area cut or down-sized. It is no secret that we all live in volatile and unpredictable society, and one where anything can and does happen. As such our number one priority should be ensuring that we are comprehensively insured.