Even on a tight budget, there are several ways to ensure that your insurance covers your risks. Do a thorough review of your short-term insurance portfolio to see that you are getting the best value for your money, while ensuring you have peace of mind that your car, home and belongings are protected.
Know your risks: Know where you and your family are most vulnerable to loss or damage. If you had a car accident, or your house was damaged in a fire or flood, how would you recover?
“Many people cut back their car insurance to third party, fire and theft – but that means you won’t be covered for accident damage,” says Wynand van Vuuren, client experience partner of King Price Insurance.
Review your current cover: Go through your insurance schedule line by line. Are you paying for assets you do not own anymore? Do you insure jewellery that is kept in a safe? Do you have shortfall cover on cars that are paid off? Are you still paying last year’s premium on cars? Do you work from home, and your house is always occupied? By demonstrating lower risk, you can save money. You can also reduce your risk and premiums by installing additional security measures.
Update your details: If your personal circumstances have changed in the past year, it is critical to update your insurance accordingly. These details could have a major impact on your premium.
Check your home contents cover: The key is to make sure that you cover your home contents for their current replacement value, not what you paid for them. High-value items kept in the house are covered under your home contents policy. The moment you take them outside the house, they must be included under your portable possessions cover, or they are effectively uninsured.
Ensure that your house is fully covered: A building’s market value is not the same as its insured value. Work out what it would cost to rebuild your home if you had to, and insure that amount. A building’s insurance should cover what it would cost to rebuild your property from the foundations up.
Combine your policies: Insurers love clients who have more than one policy with them. So, if you cover your house contents and a car, for example, you’ll probably pay less. You will also benefit from a multiple car discount if you cover two or more cars.
“There are lots of ways to cut your insurance costs, without giving up your insurance. Small amounts add up. Then you can redirect those savings into something that pays off debt,” says Van Vuuren.
