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Insurance is one of those expenses that we can’t avoid, unfortunately. It’s just not worth the risk. But what we can do is make sure that we are not wasting some or all of that money by making silly mistakes.
Below are the top 5 mistakes people make with their insurance, which ends up costing them money.
1. Not being insured
Most people have health insurance and car insurance. But far fewer people have household insurance and many people who are self-employed don’t have income insurance. If your house is burgled or burns down, it can take years to recover from the financial impact. If you combine car and household insurance with the same insurer, the combined premium is usually much lower than insuring them separately.
2. Under-insuring
When insuring your household contents, make sure you accurately estimate the value because if you are under insured, you will be paid out less than you may be expecting. As an example, if all the contents of your house are worth R500,000 but you insure them for R250,000. If you have a burglary and half your stuff is stolen (R250,000 worth), you will be paid 50% of that amount (R125,000) because you are 50% under-insured.
3. Not specifying
Most insurance companies have policies around the specification of high value items. Make sure you follow their instructions when providing your information otherwise when that fancy camera gets stolen, you may not get paid out.
4. Not getting a new quote every year
Insurance companies like to put your premiums up every year. But the insured value may actually be lower, get them to quote again. Even better, gets quotes from other insurers. They will normally offer competitive rates to win your business. Which leads to the last point…
5. Not changing insurers
Many people get stuck in routine and stick with the same insurer their whole lives. There is no need for that, changing to a new insurer is very easy. Get quotes on your insurance from other places and if they are substantially cheaper, move. But remember to compare apples with apples, their premium might be lower but their excess might be higher or they may not include extras like a hire car, etc.
To save yourself some admin, you could just get insured with King Price. Instead of increasing each year, their premiums drop every month! Click here for an online insurance quote and #GetInsured with #KingPrice.
