Struggling with recession? Do not ditch your insurance!

With the recession persisting, thousands of consumers are feeling the pinch. In an attempt to cut down on their overhead costs, many of them have resorted to the cancellation of their car and home insurance. Although this mindset is understandable, cancelling one's insurance is not a wise decision, says Guy Eagle, CEO of Car and Home Insurance.

“South Africa's insurance industry has reported that many people have cancelled or are planning to cancel their insurance policies to save money,” explains Eagle, an insurance comparison service expert.

“This is understandable, but if you are struggling financially, a car accident or a fire in your home can have disastrous financial consequences if you cannot lean on financial reimbursements by your insurance company,” he adds. “You might end up paying thousands and thousands of rands to make up for the loss. If you are planning to ditch your insurance due to financial reasons, you will not be able to afford this. The chances are that you will be haunted by this for a long time.”

Eagle advises consumers who seek to save money, to rather look at another insurance policy that fits their budgets and new circumstances, instead of going solo. “The trick is to find the policy that suits your needs without you having to bend over backwards financially,” he noted. “There are countless coverage options that fit every budget.”

Many people are under the impression that the hunt for another, cheaper insurance policy is a time-consuming and frustrating affair. This does not have to be the case, Eagle assures: “You really do not have to go from bank to bank, from financial institution to financial institution to end up with the best quote.”

He adds: “With 'CarandhomeInsurance.co.za', for instance, a few clicks and filling in one simple form are sufficient to instantly obtain nine quotes from South Africa's top insurance companies - all tailored to you needs. It's easy, painless and time-efficient.”

Skipping on, for instance, your car insurance payments to save money, is not an option either, Eagle warns - especially when you are paying off your vehicle. “Many vehicle finance companies oblige you to have insurance. Skipping two subsequent payments means you are breaking you car finance agreement, which can lead to the finance company taking possession of your car. You don't want to be in this position.”