Cannot afford Insurance?

Posted by B-Sure Africa

Cannot afford Insurance?

27th November 2018

Here’s why you can and should be able to stay protected.

“Sorry, I cannot afford to pay this month,” “Is there a possibility you can discount my policy premium?” “Is that the best premium you can get me?” “I found cheaper cover elsewhere”.

 

These are just a few of the many cancellation reasons I hear on a daily basis working as the Cancellations Manager and trying to retain our clients and explain to them the importance of having comprehensive cover and the consequences of not having correct protection for their assets in the short-term insurance market.

 

After many years of working in the cancellations department here at B – Sure Africa Insurance Brokers, I have found that many people, especially our younger generation, are not fully informed and up to date with how insurance as a whole works.

Especially when it comes to vehicle insurance, we find clients who are struggling to pay their monthly premiums, although when the vehicles are financed or the finance application was filled in, there is a section in which insurance cover needs to be accounted for but for some reason, clients are either really not sure how much it costs to cover their specific vehicle of choice and also how much each individual’s insurance history affects the premium and the insurance companies’ decision on whether they will accept to cover the specific client. How do you work around this? Call your broker to find out exactly what you would pay in premiums for different cars and that way, you will have a more realistic figure with which to work and make sure you can afford your car payment and your insurance premium. Knowing insurance premiums beforehand might also help narrow your search down to a range of cars and that’s always a good thing as there are already so many choices out there!

 

Many people are also not aware that having insurance is a requirement of financing a vehicle and the finance house can request proof of insurance at any time. As such, make sure you actively covered at all times.

 

I have also found that clients choose to cancel their insurance because they don’t understand the repercussions that come along with cancelling comprehensive insurance. They would much rather cancel their insurance, which is a necessity, rather than cancelling their luxuries like DSTV, fast foods, etc. Some clients don’t understand that if their vehicles are written off, stolen, etc., they will have to pay for the car until the financing is done or take out a loan to pay it so that they are able to get another car to continue with their day to day lives.

 

In addition, people forget that if they cause damage to another person’s vehicle, they will be liable for that, and without insurance, coming up with potentially hundreds and thousands of rand is impossible for most people. As such, at the very least, everyone should have cover for third party, fire and theft.

In conclusion, I think we need to as a country be a lot more cognizant of insurance and pass as much knowledge onto our youth. We need to manage our luxury spending on weekends and especially over the festive season so that we can afford to pay for our assets to be correctly covered and we can all live a little more freely knowing that we are covered.

 

Graeme Belford.