In the current economic landscape consumers often find themselves contemplating ways to cut down on their monthly expenses.
Insurance can sometimes feel like another monthly expense, especially when household budgets are under pressure. But cancelling cover to save money could leave you responsible for a much larger unexpected cost later.
Insurance is essentially about managing financial risk. You pay a premium for agreed protection against specified events, subject to the terms, limits, excesses and exclusions of your policy.
Whether you're protecting your car, home or belongings, having suitable insurance can help prevent an unexpected event from becoming a long-term financial setback.
Here are ten important benefits to consider.
One of the biggest benefits of insurance is financial protection.
An accident, theft, fire, storm or other insured event can create expenses you weren't expecting. Depending on the cover you've selected, your insurer may contribute towards repairing or replacing insured property after a valid claim.
This means you don't necessarily have to carry the full financial impact of a covered loss yourself.
South Africans already have many competing household expenses. Stats SA's latest Income and Expenditure Survey estimated annual household consumption expenditure at R3 trillion, with housing and utilities, food, transport, and insurance and financial services accounting for approximately 75.6% of household expenditure.
A major uninsured loss could place additional pressure on that budget.
Having appropriate cover can help protect the savings you've worked hard to build instead of forcing you to use them to replace a stolen vehicle or repair serious damage to your home.
For many South Africans, a vehicle is an important part of everyday life.
The right car insurance can provide protection against specified risks such as accidents, theft, hijacking, fire or weather-related damage, depending on the type of cover you select.
Comprehensive, total-loss and third-party options don't provide identical protection, so understanding the difference matters. For example, third-party-only insurance generally protects you against qualifying liability for damage you cause to someone else's property rather than damage to your own vehicle.
MiWay provides different car insurance options so you can choose cover according to your needs and budget.
Your home may be one of your most valuable assets, but the building itself isn't the only thing worth protecting.
Home and property insurance can include protection for the physical structure of your home, while home contents cover can protect specified belongings against insured events.
South African properties also face weather-related risks. National Treasury notes that comprehensive property insurance may cover natural-disaster risks such as flood, hail, strong winds, earthquakes, landslides and subsidence, depending on the policy.
If you're reviewing your Home and property insurance, check both the building and contents portions of your cover and make sure the insured values remain appropriate.
Insurance can't prevent accidents, theft or severe weather. What it can do is make the potential financial consequences more manageable.
Knowing what is covered, what excess applies and what limits or exclusions exist gives you a clearer idea of the financial risk you're carrying yourself.
That's an important part of responsible financial planning.
Some short-term insurance products include useful assistance benefits.
Depending on your insurer, policy and selected options, these could include roadside assistance, towing, locksmith services or help with certain household emergencies.
Miway's current car insurance offering, for example, includes 24/7 roadside emergency assistance on qualifying cover.
Check your policy before an emergency occurs so you know what assistance is available and who to contact.
An accident doesn't always affect only your property.
You could potentially be held financially responsible for damage caused to someone else's vehicle or property.
This is where third-party liability protection can become particularly valuable. The exact protection depends on the type of insurance you've selected, so check the liability limits and exclusions in your policy wording.
The financial impact of a loss is only one part of the disruption.
If your vehicle needs extensive repairs, for example, optional car-hire cover may help you stay mobile while an insured vehicle is being repaired following a valid claim.
Similarly, appropriate home cover may help with qualifying repairs after an insured incident.
These practical benefits can make it easier to get everyday life back on track.
Insurance shouldn't be something you buy once and forget about.
Buying another car, moving home, renovating, buying expensive household items or changing how you use your vehicle can all affect your insurance needs.
Review your policy regularly and tell your insurer when circumstances relevant to your cover change.
You can also read MiWay's guide to understanding short-term insurance cover for more information about choosing cover that matches your circumstances.
Perhaps the biggest benefit of all is preparedness.
You can't know when an accident, theft, fire or severe storm might occur. But you can decide beforehand how much financial risk you're comfortable carrying yourself.
That's what insurance is ultimately designed to help with: transferring specified financial risks to an insurer in return for a premium, subject to the policy terms.
Before cancelling cover because you're trying to reduce monthly expenses, consider the financial impact you could face if you had to replace or repair an important asset yourself.
If affordability is becoming difficult, speak to your insurer about your options before simply cancelling your policy.
There isn't one policy that's right for everyone.
Consider the assets you would struggle to repair or replace yourself, your potential liability to other people, your budget, the excess you could afford and the level of risk you're comfortable carrying.
Then compare those needs with the cover, limits and exclusions in your policy.
If you're looking to protect your vehicle, home or other important assets, get an insurance quote from Miway and choose cover that works for your needs and budget.
The main benefit is financial protection against specified risks. If an insured event occurs and your claim is valid, your insurer may pay towards the covered loss according to your policy terms.
Car insurance can help protect you against selected financial consequences of accidents, theft, hijacking, fire, weather damage and third-party liability, depending on the cover you choose.
Not all personal insurance is compulsory. However, certain contractual arrangements can require cover. For example, vehicle finance providers may require comprehensive insurance while a financed vehicle is being paid off.
Buildings insurance generally protects the physical structure and permanent fixtures, while home contents insurance protects qualifying possessions inside the home. The events covered and applicable limits depend on your policy. Miway's own current FAQs distinguish these two forms of protection.
Before cancelling, consider whether you could afford the financial impact of losing or damaging the insured asset yourself. You can also speak to your insurer about adjusting your cover, excess or other policy options.
