Do you have insurance? Of course you do. You’re a smart cookie who knows how to protect your stuff and peace of mind. But are you sure you have the right insurance? The best insurance? The most awesome insurance ever? Well, maybe not. You see, a lot of people make some common insurance mistakes that can cost them a lot of money and hassle. In this blog, we’ll look at some of those mistakes so you don’t have to repeat them.
Under/over-insuring your home
Your home is your castle, your sanctuary, and your happy place. And you want to keep it that way, right? Right. So, you need to make sure it’s properly insured in case something bad happens, like a fire or burglary.
But how do you know how much insurance you need? Well, 1 thing you don’t want to do is solely rely on the bank valuation of your home, which may not reflect the true cost of rebuilding your home. Another thing you don’t want to do is insure your home for more than it’s worth, which will only make you pay more for no reason.
Instead, what you want to do is to get an independent valuation of your home that considers the current prices of materials and labour, as well as any special features or fittings that make your home unique. You also want to review your policy regularly and update it if you make any changes to your home, like adding a pool or granny flat.
Telling ‘white lies’ on your insurance application or claim
You know what they say: Honesty is the best policy. And that’s especially true when it comes to insurance. If you lie or leave out info on your insurance application or claim, you’re asking for trouble. Big trouble.
For example, if you say that your car’s parked in a garage when it’s actually parked on the street, or if you forget to mention that little fender bender you had last year, you may end up with no cover at all. And that’s no fun. Even if you think a ‘white lie’ will save you some bucks on your premium, it’s not worth the risk. Always be truthful and accurate when dealing with your insurance company.
Not doing enough research
Insurance isn’t a 1-size-fits-all product. Different insurance companies offer different plans, benefits, and prices. You don’t want to settle for the first option you find, or the cheapest 1 necessarily. You want to compare different quotes and policies, and read the fine print carefully. You also want to check the reputation and client reviews of the insurance company. You may find that paying a little more for a better policy will save you a lot of stress and money in the long run.
Not updating your details
Your insurance needs and circumstances may change over time, and so should your policy. If you move to a new address, change your car, get hitched, have a baby, or start a business, you need to let your insurance company know and update your policy accordingly. Some changes may lower your premium, like installing an alarm system or moving to a safer area. Some changes may require more cover, like adding a spouse to your policy. By keeping your insurance details up to date, you can avoid paying for stuff you don’t need or being under-insured.
Not reporting an accident to the police
If you’re involved in a car accident with another car, you need to report it to the police and get a case number. This isn’t just the law, but it’s also a requirement from your insurance company. Without a case number, you won’t be able to process your claim. Reporting an accident to the police ASAP will also help you to provide accurate and consistent info, and avoid any disputes or fraud.
There you have it: The most common insurance mistakes and how to avoid them. If you follow these tips, you’ll be a savvy insurance buyer who gets the best value and protection from their insurance. Looking for a quick commitment-free quote to get started? Click here or WhatsApp King Price on 0860 50 50 50. We’ve got your back, your business, and even your bakkie!
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.
