Insurance priceless in our time of need

For many of us, shortterm insurance can be a grudge purchase. If we never need to claim, we feel we are throwing money away, but the protection insurance offers can be priceless in our time of need.

The consistency in maintaining premiums that are suited to what you are insuring, is really where the magic comes in.

It also brings peace of mind, which can be priceless.

Avoid car trouble

Imagine for a moment that you decide to cancel your car insurance because you aren’t driving around as much.

Perhaps you are working from home for the foreseeable future.

You decide to go to the shop to collect some essential items and, tragically, have a car accident.

You might be fine physically, but imagine the car must be written off, instead of repaired.

Even if repairs were possible, those come at a cost.

Without car insurance, you won’t have any funds to fall back on, and you will either need to go into debt or use savings to fix the problem.

If you are still paying off your car and have car insurance contingent on that arrangement, have you checked if it covers your car being written off?

Paying off a car that you no longer own is a terrible economic predicament to be in at any time, let alone off the back of a global pandemic that is affecting the economy.

For many of us, a car is essential, so extra money will be needed to get around via public transport or private taxis.

Everything counts

It’s tempting to reduce cover wherever possible, which could mean excluding items stored in your garage (beyond your car), as well as any garden sheds or outbuildings.

Some of us have gas bottles or even store tools outside. Stormy weather helps to disguise noises and provides cover to criminals, especially at night.

Power tools could, for example, easily be stolen in such conditions, especially given that economic strain can lead to more crime.

You need to consider your property holistically to be adequately covered.

The sum insured needs to match your true replacement value in your policy.

If it doesn’t, a claim could be declined or paid out disproportionally.

Cover all items you own under contents and all structures under buildings insurance.

Planning to self-insure your shed, as an example, won’t help you if a claim arises (anywhere on your property). The rule of averages will apply.

Say your claim totals R100,000 but you turn out to be R50,000 underinsured for what you are claiming for; you are likely to only get R50,000 paid out by your insurer.

This is difficult to deal with when you diligently pay your premium, but the onus is on you to check it provides as much cover as you really need, for what you are insuring.

It would be a shame to have to rely on savings to replace stolen items. If you have a large garden or store items outside, you should really consider all the angles that could be at risk.

Keep it together

It is generally cheaper to have all the cover you need under one policy, so one way to save is to ensure you make any changes this way first.

Working with an adviser to guide you saves costs in the end too; they will ensure that nothing is left out of your insurance policy, and that it covers you as you need it to, always.

● Bertus Visser, CEO of distribution, PSG Insure