As consumers navigate tough economic times, many consider cutting expenses, including their short-term insurance cover to try to save some cash.
As consumers navigate tough economic times, many consider cutting expenses, including their short-term insurance cover to try to save some cash. Unfortunately, this may feel as though money is being saved each month but could end up costing so much more in the long run, if the need to claim arises.
With July marking National Savings Month, it’s important to keep your cover consistent to ensure that budgets don’t become at risk. Sometimes you need to spend money to save more in the long run. Short-term insurance, such as for your car and home, provides an essential safety net and financial security, protecting your pocket against the possibility of accidents, potential damage or unforeseen events. It is therefore crucial to understand the risks of cancelling insurance cover altogether.
If you haven’t had to claim in some time, you may think insurance isn’t necessary but oftentimes, once cover is cancelled, that can be when disaster strikes. The cost to repair a car after an accident or to rebuild a property in the event of a flood or fire would certainly break the bank without insurance.
With the help of your insurer, it is possible to find viable options to align your cover with your affordability because some cover is better than no cover.
For example, you could make small adjustments to your coverage levels depending on your risk profile or you could amend your excess amounts to manage monthly costs, while still maintaining crucial protection. The key to striking the right balance between cost and cover is to communicate honestly with your insurer to find a suitable solution for the safety of your assets.
Remember that it’s impossible to predict the future, but the peace of mind in having insurance will be priceless.
