These are tough times that we’re living through. The whole world is united in its fight against an unseen enemy and that has resulted in many people facing a completely different life. Apart from the very serious health stuff that’s going on because of COVID-19, there’s also the money side of things.
Go on and raise your hands if your income has been affected. Oh, all of us? Yeah, we figured. Okay, raise your hands if you’ve already started looking at what to cancel and how to make ends meet with your new (much smaller) budget? Oh right, it seems like that’s most of us again…
A lot of people are actually already in ‘cut back’ mode and have chucked takeaways, cappuccinos, and other treats in the bin, so to speak. The next common cutback is insurance. Oh boy, we can’t tell you how often people cancel their cover to save their Dollars, but it’s honestly the worst thing to cancel.
Here are our 2c on why you absolutely shouldn’t cancel your car insurance (and a royal solution to help you out).
Your future premiums
You’re probs cancelling your cover just for now and then planning on taking it up again later, but did you know that doing this could cause you to fall into a higher risk category? Yep, it’s true, and then this could mean that you end up paying higher premiums.
You could still get into an accident
If you’re driving an uninsured car and get into an accident with another car, you could be liable to cough up 100s of 1,000s of Dollars just for the other chap. That’s not counting what you’d have to pay to fix up your own car. The other person could even take you to court if you don’t pay them, which is also stupidly expensive. Even if they don’t want to start a lawsuit, they might have no choice because their insurance company (if they have 1) could feel differently.
Even safe drivers need cover
Statistically speaking, accidents, thefts, and hi-jackings are incidents that happen to anyone, not just bad drivers or people who drive in ‘unsafe areas’. So, it doesn’t make sense to cancel and think that it’ll be okay because you’re a fairly safe driver.
It could actually be illegal to cancel
If your car is financed by the bank, then the chances are that you’re legally required to have cover (if not comprehensive cover). And you have to keep your policy until you’ve paid your car off. By cancelling the policy, you’ll be in violation of the terms of your financing agreement.
The king has the solution
Before you go ahead and cancel, take a second to let the king help you. We pioneered decreasing premiums for comprehensive car insurance, so your premium will decrease every month at a rate that matches your car’s depreciating value. See that? Your premium will get less the longer you stay with the king. So hang in there, if you can.
If staying with our comprehensive cover isn’t possible for your budget, then talk to us about a policy that’s cheaper. We have a third party, fire and theft option and a third party-only option. By taking a less comprehensive policy you’ll still be covered and you’ll pay less. Remember, some cover is better than no cover at all!
The trick is to not get stressed out about this. Just give us a call us on 083 600 7000 so we can chat about your options. Maybe it’ll work to increase your excess to bring down your premium, or maybe it’ll work to change to a cheaper and less comprehensive policy. So, please just get in touch with us so we can talk about what’ll work best for you.