Each year, your short-term insurance is automatically renewed and many of us will allow this to occur without checking to see if we are now under or over-insured.
However, each year, things may change and this means that we need to check our insurance policies each year and this could even save you money in the long run.
Here are 5 tips to clean up your insurance policy, which could lead to savings in the long run.
Take A Look at the Amount
When reviewing your insurance policy, you need to make sure that you are insured for the right amount. Things may change in a year and you may have bought something new or you may have sold some things. This will change the amount you need to be insured for.
This is also true of your car. Your car will have aged another year and your insurance premium might need to be adjusted accordingly.
Have a look at your short-term insurance policies and see where you may need to adjust the amount.
In terms of home contents insurance, the value of goods insured should be equal to that of what it would cost to replace them today and not the original price.
Many times goods stay insured for their original price, but to replace that item today may cost more than it did when you originally purchased the item.
If you then had to make a claim, you might be left very disappointed as you may only receive a small amount but the items have all gone up in price.
Generally, your sum insured is adjusted automatically, so that the covered amount will keep up with inflation. Make sure to check your policy document to ensure that this occurs.
How Your Home is Structured
If you have renovated your kitchen or replaced the roof or even added a swimming pool then you will need to increase the amount that your home is insured for.
Your house in terms of its structure as well as your belongings needs to be insured for their replacement value. The replacement value is what it will cost you to replace or rebuild your home or belongings with similar and new items or structure.
How About Your Car?
Your car will need to be insured at a sensible market value, which is the retail value that a dealer would sell it for. The value will take into consideration the age, condition, extras and mileage.
You can use online tools to get an idea of what your car is worth or you can contact your insurance broker, who will be able to work out the reasonable market value of your car.
Take Time to Compare
You may have been with your short-term insurance provider for years, but you should be comparing insurance quotes each year. Insurance companies are constantly in competition with one another, so you may find that you can get a better deal somewhere else.
You can use online tools to compare multiple insurance policies from top providers in South Africa all at once, making it easier for you to choose the one that suits your budget and your needs.
Keeping your insurance up to date can help you to save money in the long run and if you do ever need to claim, you can avoid disappointments as you will get the money you need to replace the item. Making sure you are adequately covered for both home contents and your car can ensure you have the finances available if anything were to happen.