1. Thinking you can’t afford it

Your finances are under a lot of pressure, and although you know you need it, insurance is the last thing you feel you can afford. Our mantra is that some cover is better than none at all. Even if you get basic cover like third-party damage, it will protect you from massive financial loss if you are involved in an accident. Look at your options and decide what you need most, start small, but start.

  1. Setting your excess too high… or too low

Your excess payment is the amount that you are personally responsible for during a claim. Your basic excess is the least that you will end up paying in a claim, additional excess amounts sometimes apply. It’s important to understand that even though a higher excess payment means lower monthly premiums, you will still need to be able to afford the excess amount should you need to claim. Don’t let your excess amount come as a surprise – call your insurer if you are not sure.

  1. Not reading your policy document

Even the fanciest insurance policy, with all the bells and whistles added, has exclusions that apply. These exclusions could result in your claim not being paid. It is important to read your policy document when you receive it and ask questions if you don’t understand something. Lest you enjoy nasty surprises.

  1. Not updating your cover

Your home contents insurance cover is based on how much it would cost to replace everything in your home should it all be stolen, or destroyed. That said, the ‘everything’ in your home can greatly differ from one year to the next, depending on how many times you’ve visited your favourite furniture store in the last few months. Keep an inventory of all the things in your home covered by your home contents insurance (including clothing and appliances). Check this once a year, at least, to make sure you’re not underinsured. Added to that, if you make a point to call your insurer at least once a year and negotiate a discounted monthly premium. King Price is the only insurer that does that automatically, but the rest will capitulate if you ask nicely.

  1. Comparing apples and oranges

Monthly premium costs are just one way to compare all of the different insurance offerings in the market. But looking at price alone might not be the best indicator of the quality of insurance cover you’re getting. Make sure that your new insurance policy covers all the bases you need it to. Check what benefits your policy comes with and whether your insurer offers 24/7 road and medical assist. Make a list if you have to and make sure you’re getting what you pay for.

Article credit: http://www.destinyconnect.com/2016/02/16/take-insurance-out-of-the-friendzone/