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Many struggle with insurance

Aug 07 2008 06:54

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Johannesburg - One in five people can no longer afford to insure their car, according to research by justmoney.co.za released on Wednesday.

With the cost of living spiralling, justmoney.co.za asked visitors to their site what they would do when faced with higher insurance premiums. Thirty-eight percent said they would shop around for cheaper premiums, 31% would just pay the increased premium, 18% said they couldn't afford to pay insurance any more, while 13% said they would negotiate a lower premium.

"It is not surprising that when money gets tight, expensive items like insurance cover get sacrificed in the list of financial priorities. But not having adequate insurance cover is dangerous, and could turn out to be more costly in the long run," said Paul Beadle, MD of justmoney.co.za.

Justmoney.co.za said that consumers should always try and lower their insurance premiums by shopping around for other quotes to compare, as well as negotiating with their existing insurer to see if they can better their latest quote, adding that it was equally important that customers kept their insurers up to date with the latest information about their belongings.

"Insurance is seen as a grudge purchase - something we know we need, but because it seems so expensive we try to get it as cheaply as possible without any thought as to whether it is the right cover or most cost-effective policy.

People need to review their insurance regularly, just as they would their investments or a home loan, so that they know they are getting the maximum value for money - and protection - from their insurer," said Beadle.

- I-Net Bridge

 
 
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