Trying to save money? Review your insurance instead of cancelling it

It is important that people review and alter their insurance policies as their lifestyle changes. Picture: Freepik

It is important that people review and alter their insurance policies as their lifestyle changes. Picture: Freepik

Published Aug 29, 2023


Your life and lifestyle can undergo changes such as getting married, buying a car, purchasing a new home, or going back to the office to work.

Therefore, it is essential that people make changes to their insurance policies as their lifestyle changes.

If people review their cover and stay on top of their insurance, they could be saving money and ensuring that their cover is fit for purpose.

These are the aspects to consider:

Car insurance

According to Keletso Mpisane, head of MiWay Blink, it is advisable that people review their car insurance policies to make sure that they meet all of their requirements.

Mpisane said that understanding how premiums are calculated helps in this process.

"Some prefer to pay a lower monthly premium and opt for a higher excess to be paid in the event of a claim, while others don’t want to fork out a large excess amount when they need to claim and rather prefer to pay a higher premium every month," Mpisane said.

People should also check that their car insurance policy meets industry standards.

Life insurance

Lee Bromfield, the CEO of FNB Life, said that for families who have plans to protect themselves against the financial impact of tragic events, we encourage consumers to make sure they have funeral and/or life insurance, and for those who have insurance, people should make sure it is maintained on a regular basis.

Make sure that your beneficiaries and their details are up-to-date to avoid delays in the event of a life insurance claim. Check your policy to see if you have adequate insurance coverage for a range of circumstances, such as death, disability, and chronic illness.

Home insurance

Wynand van Vuuren, the client experience partner at King Price Insurance, said that it is vital that people insure their home contents for their replacement value and not what they paid for the items.

"Also, make sure that you’ve specified any high-value items that you take outside the house under your portable possessions cover, or they’re effectively uninsured. That includes your phone, laptop, jewellery, watches, and sunglasses; clothing; your gym bag and its contents; and luggage, for example," van Vuuren said.

If you have bought a new TV or laptop, make sure that they are included in your home insurance policy.

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