Insurance. It’s the monthly expense everybody loves to hate… Until disaster strikes, and then suddenly it’s the best thing since Nutella. But it doesn’t have to be that way. We could all have a far healthier, happier relationship with insurance if we understand our risks better.
In insurance terms, risk is the chance that something accidental or unexpected can happen and cause loss or damage to property and belongings that belong to us as well as to other people.
And, most of us engage in basic risk management every day without even thinking twice about it. We drive responsibly. We lock our houses when we leave home, and we make sure our cars are locked when we park them. We keep our wallets and phones safely tucked away when we go out in public. So why wouldn’t we take the same level of care when it comes to protecting the other things that are important to us, like our homes, our cars and our precious belongings?
There are 3 steps on the road to better risk management for consumers:
Establish your risks: Before you buy insurance, know exactly what your own risks are, how you can reduce the likelihood of them occurring, and how you can reduce their impact if they do occur.
Think about where you might be vulnerable to loss or damage, and whether you could cover the damages yourself if something were to happen. What happens if you have a car accident, or your house burns down? How would you recover financially?
For example, if your car is only insured against third party liability, fire and theft, you won’t be covered for accident damage… Which is the most frequent loss that insurers see.
Review your existing insurance: Take a good look at your current insurance schedule, and what it covers. Are you paying for assets that you don’t need, or possibly don’t even own anymore? Do you insure jewellery that’s kept in a safe and never worn out of the house? Do you have shortfall cover on cars that are paid off? Are you working from home, and is your house is always occupied? Are you driving less? These are all areas where you could potentially save money by demonstrating lower risk.
When it comes to home contents, for example, most of your premium goes towards covering theft risk. If you live in a secure complex or estate, where theft isn’t a risk you need to worry about, it’s possible to exclude theft from your home contents insurance, while staying covered for fire, floods and other perils. You could also reduce your risk (and your premium) by installing additional security measures like electric fencing and an alarm system linked to armed response.
Talk to your insurer: Today, most insurers can structure an insurance package according to your needs. If you feel you’re paying too much for your short-term insurance, don’t settle for the first quote you get. You’ll be surprised by how much premiums can vary between insurers for exactly the same car, buildings, and home contents cover.
If you can combine all your policies with 1 insurer, even better. Many insurers will give you a discount for bringing all your business to them, starting with additional savings for putting more than 1 car on the same policy. Try including your buildings insurance and your home contents cover as well: Your savings could increase even further, and your life could get a whole lot easier with the peace of mind that all your risks are covered.
Click here or WhatsApp King Price on 0860 50 50 50 for a commitment-free insurance quote that matches your needs, risks and budget.
Psst… This blog provides general info only, and doesn’t count as financial or product advice from King Price or our legal and compliance experts. Remember, all our premiums are risk-profile-dependent, and T’s and C’s apply. Our most up-to-date KPPD (policy wording) can always be found here.
Our website T’s and C’s can be found here. King Price Insurance Company Ltd is a licensed non-life insurer and registered financial services provider. (Reg no. 2009/012496/06 | FSP no. 43862)
