Don’t cancel, RESTRUCTURE.
Globally we have all had a major shock to our system. However, the financial relief offered from all levels has been overwhelming.
Let’s look at your Short Term Insurance. The gripe and grudge purchase of the lot.
Many if not all leading insurers, realizing the loss their clients were facing (and the fact the claims will be down) came to the party and applied a covid premium reduction.
Santam gave 20%, Hollard gave 20%, Outsurance 15%, Miway 17%, Momentum 17%. Discovery one of the first to raise its hands (won our award) gave between 15% and 25%, as well as opening their rewards or excess funder to pay a full premium.
However, for more than most businesses and the man on the street, this is not enough. So what else can you do as a client?
No, the one thing you DO NOT do is cancel your insurance…. What you DO do though is (and breath out), you restructure it.
We have reviewed many of our client’s policies and by looking at some small changes resulted in a very nice premium drop, some by hundreds of Rands.
Try it. It works.
On the personal side:
Increase your excess. The higher the excess the lower the premium. Keep it reasonable and constructive. If you have two cars. Use only one. Increase the excess on the vehicle, not in use.
You work from home, the car is paid off and is safe where it is parked. Reduce the cover to Third Party Fire and Theft. If you have the second vehicle keep it at comprehensive and use only that vehicle. Own damage is excluded on TP, F & T cover
Ask your broker/insurer to play around per vehicle to see which is the better saving.
Lose the car hire. If you going to work from home indefinitely and you can still get to the shops and/or use delivery services or have a second vehicle. Lose it.
Many short term policies throw in ‘other cover’ that you might not need during this time. (Cross Border Cover, En route Cover). Remove it if it is not needed.
Specified ‘Out the House’ cover: Insure your phone or only the items you carry out the house. Take off what can stay in the house. Just familiarize yourself with T&C’s i.e. items over a certain value may need to be in a safe.
House Contents / Buildings Cover – increase the excess and if you are if a safe estate or complex with ample security remove the Theft aspect from the cover.
Look at alternative quotes. Watch out for the direct insurers though as some do not have the same cover although at face value it may seem so. It might be in the finer print.
Just remember that once we are back in the sunshine to change the cover back again.
If you currently do not have a policy through Stability let us help you do this.
If you wish to RESTRUCTURE your BUSINESS INSURANCE we are experts on that too.
Stay safe and stay healthy.
