It has been 5 months since South Africa’s national lockdown was announced. Now reaching Lockdown Alert Level 1, many restrictions have been relaxed by the government.
Unfortunately, the pandemic has put South Africans under financial strain, which has put household expenses, monthly budgets, and insurance bills very much under the spotlight.
It’s essential, however, for consumers not to abandon their insurance cover, but rather to seek an alternative that can meet their new monthly budgets.
Find yourself a financial advisor
Therefore, it’s important to consider looking for a good, professional insurance broker who is a certified financial advisor.
Most insurance companies have dedicated advisors, who help clients identify their specific needs and risks associated with it.
Before committing to any policy, it’s important to either speak with your insurance company directly or with an independent broker.
The brokers that work in the industry have a lot of experience and help clients understand what their policy entails and if there are any risks at hand.
When dealing with an insurance broker, it doesn’t mean that it is more expensive. Most people are fooled into thinking that it is cheaper to deal directly with an insurance company.
Time for restructured change?
It shouldn’t take a global pandemic like COVID-19 to make you want to review and restructure your insurance policy to satisfy your demands.
This is important, because circumstances are always changing and this can result in claims being rejected when there is a cover mismatch.
In this case, the detail in the policy cover no longer matches the policyholders cover criteria, which is why it is imperative to review your insurance policy often.
With COVID-19 changing our lives in more ways than one, now is an excellent time to take advantage of how you can restructure your insurance policy.
There are a few options you can consider, which may include:
- If you are in a two-car household situation and both of you are now working from home. In that case, you could potentially get reduced cover on the 2nd car’s policy as it is not being used for trips to the shops, etc. The 2nd car will most likely be parked securely and will not be used. This car’s cover could be reduced, or its excess increased to save a substantial amount.
- Students who have cars and are now able to stay at home and study may save a substantial amount of money on those policies by increasing the excess or by reducing the cover to third-party fire and theft.
- Households that are now all working from home or are not working could consider finding ways to reduce their risk policies that include insuring items like cellphones and jewellery. Many South Africans don’t leave home as often anymore, and many corporate companies are allowing their employees to work from home until the end of the year. Therefore, you can quickly put this cover on hold until it is needed again and save money.
- With COVID-19 pushing the economy into more challenging times, it has become a consumer’s market. Shop around for better insurance deals. Insurers might be offering better and more competitive packages now more than ever. Insurers would be willing to negotiate better deals to win you over.
- For some consumers, their finances are stretched, but some could pay their insurance premiums a year in advance. In doing this, they could save up to 10% in their premiums. This could be to some household advantage, if they were to be retrenched or have suffered a reduction in income. When you pay a year in advance, your policies terms are locked in for 12 months and cannot be changed.
If you are looking for affordable car insurance, consider PMD – which offers unique benefits such as fixed premiums* and a reduce to zero excess*. Ts & Cs apply.
Please consult a certified financial advisor before you decide to buy car insurance products. The contents of this article are for informational purposes only.
This article was published in partnership with Prime Meridian Direct.