Clever consumers survive difficult economic times

People become uncertain when the global economy is under pressure. Then they make panic decisions which could have disastrous consequences.

The same applies to short-sighted or impulsive decisions regarding insurance. To terminate one’s insurance during an economic pinch, is probably one of the biggest risks one could ever take. If you can’t afford a monthly premium, then how, for instance, will you be able to replace your vehicle if it is written off in an accident or stolen? Such a wrong decision could not only hurt you financially – it could ruin you, says Mouton.

There are clever ways of scaling down on your insurance if it is really necessary. That is why you should rather discuss your personal options with one of our professional financial services advisors.
One way of saving on your premium, is to accept certain risks by increasing your excess payment. One of the best methods of saving money is to store expensive, specified items such as jewellery in a safety deposit box at your bank until your financial situation has improved.

It also helps to consolidate certain financial services, for example to have your building insurance under your short-term insurance as well. The saving is quite considerable, says Mouton. By talking to one of our specialists, you could plan the best possible cost reduction without necessarily being worse off, should something happen to you. The secret is, under no circumstances should you terminate your continuous insurance. Many insurers refuse to grant cover to clients who have interrupted their cover. In most cases, loyalty and no-claim bonuses will not be allowed if a new policy is taken out after an interruption.

Mouton says people should pay no attention to misleading advertisements promising socalled cheaper insurance, but keeping quiet about the fact that certain necessities are not insured. The secret lies in separating the wheat from the chaff.

De Wet Mouton
General Manager:Business Development