Here are a few things you need to know about insurance before you proceed with your day.
Some are compulsory, some aren’t
In certain cases, you are legally obliged to have insurance. If you’re taking out a home loan, you are required to have home Insurance. Car insurance is one of the many insurance policies that are optional but it’s not advised to drive without one, especially with the known dangers of South African roads.
It can help you save money
That’s right. Although you may pay a monthly premium, having insurance can save you money at the end of the day. Consider this, you may pay a monthly premium of R400* on your car insurance, but it’s a lot more affordable than having to pay R40 000* once off for the damages on your car. Imagine this: you pay a premium of R400* on your car insurance over 4 years. That calculates to R19 200*. Now imagine you’re involved in an accident and the damage to your vehicle exceeds that amount? Your insurance company will pay to repair the damage to your vehicle, depending on your policy stipulations.
You can get your premiums back
Most insurance companies offer customers a chance to get their premiums back after a set amount of time without claiming. This means that some of the money you paid over time on your insurance premiums can be given back to you to spend as you please, barring that you haven’t claimed or switched insurance companies. It’s best you hear by your insurance company what their pay-back offers are.
You can help your family
Unemployment is something that no-one wants to discuss or even consider, however it’s a possibility. With many insurance companies offering insurance against your salary, you can be at peace knowing that you will be able to continue supporting your family during the transitional phase of looking for new employment.
You can barter a better deal
Unlike retail, insurance is not a set cost. It depends greatly on you or your circumstances and current situation. This means that you can barter a better deal for yourself or get several quotes from different insurance companies and see which is best suited for you. You can also lower the premium of your current insurance policy. For example, if you own a vehicle and you fit a car tracking system, it will decrease your premium as your vehicle’s theft risk is lowered.
There are many ways to save and improve on your current insurance policy. Simply discuss your policy with your current insurance company or get an insurance quote from Old Mutual iWYZE.
