Because of the Janu”worry” aftermath, you might be tempted to cut costs to make up for your recent overspending. One cost item that stands out in particular for many, are monthly vehicle insurance premiums – as this expense may seem high to maintain. As a result, consumers end up thinking that they will save more money by cancelling their vehicle insurance policy.
However, it is not a smart choice, especially in the long run. Eugene Herbert, managing director of an advanced driver training company, MasterDrive, says “Even a relatively minor incident that puts your car out of commission can be devastating. You may be left trying to pay a bill that reaches into the thousands” says Herbert.
In addition, you would have to pay for the other vehicle’s damage if you caused the accident not to mention the loss you will suffer if your vehicle is stolen. According to a report released last year by the Automobile Association of South Africa (AA), 70% of vehicles on South African roads are uninsured. In addition, there were 16 325 reported carjacking cases from 2017 to 2018, while the festive season death toll on SA roads was 767 at the end of 2018.
As such, one can simply not afford to cancel vehicle insurance as well as life insurance. Life insurance is essential as it ensures that your loved ones are taken care of should you no longer be there. Here are the few ways to save without cancelling your vehicle insurance, cutting on your insurance premiums and without having to cancel your policy:
- Speak to an insurance broker such as Iemas Insurance Broker (FSP 47563) a wholly owned subsidiary of Iemas Financial Services, about your insurance requirements. A broker will provide you with competitive quotes to choose from while taking into account your unique needs. Thus, you will get the best cover at the best price. Speak to Iemas Insurance Brokers today on 080 102 383 or visit: http://bit.ly/2ArO6am
- Review your policy every year. Contact your insurance broker to re-look your situation and your requirements – you might be able to save due to changing circumstances. For example, your car insurance premium could be less if you moved closer to work or if your vehicle is now parked in a locked garage.
Read a related blog: How to recover from overspending during the festive season or Ways to avoid car financing pitfalls.
Adapted from: https://m.wheels24.co.za/News/thinking-about-cancelling-your-car-insurance-to-save-money-heres-how-it-cost-you-in-the-long-run-20190124