Insurance matters: Why you need to review your insurance policy in the last quarter

When it comes to owning a car, there are a few elements that you need to take into consideration – from finance to insurance. Not only do these elements ensure that you are able to afford, maintain and care for your vehicle, but they also offer up reassurance in the form of a safety net.
Image courtesy of Shutterstock.com
Image courtesy of Shutterstock.com
With the festive season quickly approaching, it is important to take into consideration the various elements that come into play during the last quarter of the year – from an increase in car accident statistics to theft. Not only do South African roads become more hazardous, but the chances of vehicle theft and vandalism take a steep climb. Did you know that during the 2015/2016 festive season, South Africa saw an increase in road fatalities by 14%, and that car theft and vandalism increased by almost 8%? When it comes to protecting your vehicle, regardless of whether it’s from the fluctuating summer weather patterns or from theft, it is important to review your car insurance policy to ensure that you are prepared for whatever the last quarter of the year may hold.

Regardless of the factors that play a role, the question remains, why should South Africans review their insurance policies in the last quarter of the year? The simple answer is to ensure that you remain in a stable financial situation during the last quarter of the year which, for many South Africans, requires concentrated financial focus and attention. Reviewing your insurance policy will also give you peace of mind that your valuables are adequately covered – from laptops and jewellery to your cell phone and sunglasses, or all items that regularly travel inside your vehicle. If you have reviewed your insurance policy carefully, it will ensure that you do not have to dig deep into your pocket in the event of an incident, leaving you cash strapped during the festive season – a season that brings with it social and school commitments, the requirements of new uniforms and stationary, and gifts and entertaining. If you’re looking for more information that will (hopefully) nudge you closer to a review of your insurance policy, take a look at the following:

1. Why do I need to do this?

It is important to remember that fact that car insurance is not simply a safety net for car accidents. Investing in a reliable car insurance policy serves a greater purpose than simply providing cover in the event of a collision. Firstly, reviewing your policy is the smart and responsible thing to do because it ensures that you don’t come short in the event of an incident. An insurance policy allows you to protect your finances, your future and your assets from the unpredictable. If you happened to invest in a car insurance policy when you first bought your car, and you have never again contacted your insurance company, the chances are high that your cover (and your premium) is relatively outdated – at the time of your purchase, you may have opted for certain car insurance products which provide limited cover.

2. Surely I am already covered?

The chances are high that, if you happened to buy a car in the last five years, you would not have been able to drive the car out of the dealership without having first signed for a comprehensive car insurance policy. However, there is also a chance that the insurance policy you signed five years ago is vastly different to what you need today. Keep in mind the fact that when you sign up for car insurance, you may be able to choose the various products that best suit your needs – from accident and theft cover to chip and dent, and hail damage. If you happen to experience a severe hail storm, you would want to ensure that your insurance policy covers the damage on your vehicle.

3. Doesn’t it take time?

A review of your insurance policy requires a simple phone call to your insurance provider where a consultant will be able to assist you, or you may even be able to do it online! Ensure that you have your policy or identity number at the ready before you make the call.

While the last quarter of the year may cause some financial anxiety, it is important to remember the fact your insurance policy should provide reassurance. Be sure to review your car insurance policy, and you can enjoy the best of what the last quarter of the year has to offer!