Why You Should Check Your Insurance Regularly
November 10, 2017
Why is it Necessary to Regularly Check Your Insurance?
- Life changes – circumstances change. That’s why you should check your insurance! You need to make sure you aren’t underpaying or overpaying for house- and car insurance.
- You need to value the contents of your home accurately because you could be under-insured
- With under-insurance, should you need to claim, you won’t receive the full amount of your claim – adjust your cover regularly
- You could get a better deal and that is why comparison shopping is important. You might be able to get as much insurance as you currently get but for less
- Check aspects about your short-term insurance. Don’t make decisions based on cost alone. And know exactly what your policy covers.
With the up and down economy, cash-strapped South Africans are looking ways to save on their finances. Yes, changes in the economy and your personal life may well affect your budget. However, there are things you can do to save money.
Check Your Insurance Police Every Year
Spring into action and see where you can save some money with your home and vehicle insurance.
While your short-term insurance is simply automatically renewed if you don’t cancel it, most people never give their home and vehicle insurance a second glance year after year.
The ombudsman for short-term insurance cautions consumers to review their insurance policies every year. The reason for this is that life changes and you may not need the same amount of insurance year after year. In other words – review your insurance every year so as to save money in the long run.
Reviewing your policy ensures that you are in fact have just the right amount of insurance.
Our lives are constantly changing, and this means your insurance has to keep pace with your changing risk needs. If you’re not sure of how to analyse your risks, a broker can help you to adjust your insurance accordingly.
Certain Factors Influence your Monthly Premium
For instance, there are a number of factors which affect your motor insurance, and the make and model of your car and its age can influence your monthly premium.
Pay attention to your All Risks cover – those items that you carelessly throw onto the back seat of your car – music instruments, laptops or even clothing, jewellery or bicycles and so on – these need to be specified under the ‘All Risks’ section of your policy.
Talking of jewellery, did you know that you should update valuation certificates on jewellery at least every 2 years? This is because insurers require valuation certificates before loss so as to prove the value as well as ownership of the jewellery.
Keep Track of Changes
When it comes to your home, to make up for your empty-nest situation, you may have decided to rent out some rooms on your property or your entire home. This changed needs to be brought to the attention of your insurer. An updated inventory of your home and its contents will also reveal items that are insured under your policy that have since been replaced.
When reviewing your insurance, you want to make sure you’re still getting good prices. There are some insurance companies who offer a discount when you for instance buy a combined home and contents insurance policy – you get a generous discount.
A solution would therefore be to to consolidate your insurance – its better to have your assets covered with one insurer rather than with many.
Make Sure You’re as Safe as Houses
Last of all, try to increase the security on both your car and home because your premium is calculated based on your risk profile.
Complete and submit the form on this page to get a car insurance quote
All info was correct at time of publishing