Why you shouldn’t cancel your car insurance
We’ve all been there. You have a few months where money is tighter than your knickers after Christmas lunch. And that inspires you to scurry over to your excel spreadsheets in search of places to cut back and give your budget more breathing room. It’s a tense time of eyeballing your expenses and pondering which of them are actually necessary. Things like eating takeaways, buying new clothes, and other treats immediately go out the window. The next common cutback that most people look to, is insurance.
Insurance premiums seem like a drag on your finances, but hand-on-heart, this is the last thing that you should cancel. We can’t tell you how often it is that people cancel their car insurance only to have an accident which has disastrous financial consequences far worse than paying a few hundred each month for your cover.
Let’s talk about the main reasons why you shouldn’t cancel your car insurance.
For some, it’s illegal to cancel
You won’t easily find finance for your car that doesn’t make it a requirement that you get car insurance. And not just any car insurance, but comprehensive car insurance at that. You have to keep the policy until you’ve paid your car off, so if you cancel your cover, you’ll be violating the terms of your financing agreement.
Banks don’t take kindly to this sort of thing and could take your car away. (What a waste of money, because up until then you’ve probably been paying your car payments regular as clockwork.)
Your future premiums
Let’s say you’ve cancelled your policy for a few months to save money and then you want cover again. Sounds like a plan, right? Wrong. You see, doing this could cause you to fall into a higher risk category. This could result in higher premiums. So it’s better to look at changing your policy to something that’s less comprehensive and more affordable.
Remember, some cover is better than no cover at all!
Insurance isn’t just for average drivers
Ever look at your mates and think… ‘Gosh, the way you drive, you can’t afford not to have insurance.’ Well, you’re not wrong really… Because nowadays you can’t afford not to have insurance when it comes to accidents and theft. Cars are just too expensive to own without some cover. But you’d be incorrect to assume that cover is only necessary if you’re a bad driver. Even safe drivers need insurance.
You see, accidents, thefts, and hi-jackings are incidents that happen to any 1. So, if you’re cancelling because you’re the best driver you know, you need to keep in mind that the roads are still populated by… How shall we put it? Let’s call them ‘less-careful’ drivers, the kind who definitely do cause accidents. Oh and thieves and hi-jackers are also not bothered by your excellent parking skills (so long as they can get into your car and drive it away).
Damage claims are astronomical
You could be liable for 100s of 1,000s of Rands if you’re driving an uninsured car and get into an accident with another car. We’re not talking about what you’d have to pay to get your own car back on the road again. We’re talking about the other person, who might go so far as to involve you in a costly lawsuit. Even if they don’t want to get legal about it, their insurance company will probably feel differently and the final bill could easily run into 6 figures.
The king to the rescue
You don’t have to cancel your insurance if you let the king help you. We believe that every South African should have access to affordable cover. That’s why we pioneered our fair and logical decreasing premiums for comprehensive car insurance. Your premium amount will go down every month at a rate that matches the rate at which your car’s value drops. Not only are you paying less, but your premium is also accurate. That’s the help your budget needs for sure.
We’ve also made sure to offer 2 cheaper car insurance policies, including our third party, fire and theft option and our third party-only option. This way, you can pay less, still get cover, and prevent yourself from getting into financial difficulties later on should something nasty happen. In fact, you can contact King Price today and we’ll help you reduce your cover amount or switch from a comprehensive policy to a cheaper policy altogether.
Don’t be caught in a financial bind. If you’re looking to save on your car insurance policy, we can help you out. Click here to see how we can cover you.
