As South Africans still hold onto new beginnings ushered in by the New Year, cleaning one’s financial house is likely the top goal for most households. However, Britz from Momentum Insure believes insurance cover review tends to take a backseat to ‘more pressing’ financial concerns, a fact that needs to change.
Consumers feel the strain from excessive holiday spending and the high cost of living. Still, now we’re over the hump and have the perfect opportunity to review our insurance policies. They must align with our current needs and circumstances.
Ignoring your insurance cover needs leaves you exposed to more risk. It doesn’t matter if you are underinsured, paying for redundant coverage, or missing out on cost savings, and neglecting your insurance review can have significant consequences.
Insurance is like a safety net you may hope you never need it, but it’s comforting to know it’s there. But would you trust that net if you hadn’t inspected it in a while? Regularly review your cover, maintain adequate protection, and do it all without overpaying for cover you don’t need.
Life changes demand policy updates
Life can change unexpectedly over a year. From buying a new car to moving house, these shifts may require adjustments to insurance policies. Britz advises consumers to consider how life changes impact their coverage. “Ask yourself. Am I adequately insured? Do I have sufficient cover for my home and car? Your policy should reflect your current lifestyle and future needs.”
Vehicle insurance: Keep your details up to date
One of the more common mistakes is failing to update car insurance policies when circumstances change. If you’ve recently purchased a new car, modified your vehicle, or changed the primary driver, your policy needs to reflect these updates. Accurate, up-to-date information is crucial to avoid complications when making a claim.
Failing to update your policy could lead to your claim being rejected or underpaid. To make this process easier, try using habit stacking by pairing your insurance review with routine activities such as vehicle servicing or pre-holiday safety checks. Whenever you take your car in for a service, take a few minutes to ensure your insurance details are current. This way, you’ll always be covered without having to remember it as a separate task.
Reviewing home and personal insurance
Homeowners who have renovated or made improvements should also reassess their policies to ensure their properties are adequately insured. Upgrading a kitchen, adding a security system, or extending a home directly impacts the coverage you need.
Similarly, those who have acquired valuable items during the festive season should update their contents insurance to reflect their current possessions. Failing to do so can result in being underinsured.
Take control of your financial security
Insurance is not a one-size-fits-all product, and as financial situations and lifestyles change, so should your coverage. By creating an annual insurance review as a proactive step toward financial well-being, South Africans can ensure they are protected against life’s uncertainties while optimising their coverage and costs. With expert advice and a thoughtful approach, reviewing your insurance can be a stress-free process that sets the tone for a secure and successful year ahead.
