Surviving the recession - 22 Oct 2009 15:13
Everyone is feeling the pinch of the recession, from consumers to big corporates. There are a number of areas where you can tighten spending in order to save money. Insurance spend is not one of them.
Meet Bob
The company Bob works for is not giving its staff increases this year, because they are in financial difficulty. Bob needs to find ways to cut down his monthly costs. One of his solutions is to cancel the insurance policy on his car.
What happens if Bob is in an accident and needs to have the car repaired? He may have been saving a few hundred rand each month, but now where is he going to find the extra money to fund the car’s repair?
The best advice you’ll get
This should be written in neon orange font: do not reduce your insurance spend to save money. The few hundred rand you will save each month may look attractive, but then consider the potentially vast sum that you will have to scrape together fund your car’s repair or replacement.
Streamline your policy
This does not mean, however, that you shouldn’t phone your insurer to see if there are ways to streamline your policy. One valuable tip is to have the policy re-evaluated each year to reflect the decrease in the sale value of your car. Insurers do not do this automatically; you have to request it.
Also remember to keep your insurer informed. Maybe you have just installed a tracking device in your car. This could lower the cost of your premium. Phone your insurer and find out.
We have all been forced to find creative ways to reduce our spending each month. Reducing your spending on home and car insurance is not one of them; streamlining your home or car insurance policy is.
Everyone is feeling the pinch of the recession, from consumers to big corporates. There are a number of areas where you can tighten spending in order to save money. Insurance spend is not one of them.Meet Bob
The company Bob works for is not giving its staff increases this year, because they are in financial difficulty. Bob needs to find ways to cut down his monthly costs. One of his solutions is to cancel the insurance policy on his car.
What happens if Bob is in an accident and needs to have the car repaired? He may have been saving a few hundred rand each month, but now where is he going to find the extra money to fund the car’s repair?
The best advice you’ll get
This should be written in neon orange font: do not reduce your insurance spend to save money. The few hundred rand you will save each month may look attractive, but then consider the potentially vast sum that you will have to scrape together fund your car’s repair or replacement.
Streamline your policy
This does not mean, however, that you shouldn’t phone your insurer to see if there are ways to streamline your policy. One valuable tip is to have the policy re-evaluated each year to reflect the decrease in the sale value of your car. Insurers do not do this automatically; you have to request it.
Also remember to keep your insurer informed. Maybe you have just installed a tracking device in your car. This could lower the cost of your premium. Phone your insurer and find out.
We have all been forced to find creative ways to reduce our spending each month. Reducing your spending on home and car insurance is not one of them; streamlining your home or car insurance policy is.