Breaking News | Thinking of cutting costs by canceling your vehicle insurance? Well think again

Thinking of cutting costs by canceling your vehicle insurance? Well think again

Life has taken a toll on numerous South Africans since the implementation of lockdown that has put a financial strain which has resulted in cutting costs on possessions in order to save money. If you are thinking of canceling your vehicle insurance to save the little that you have then think again, reducing your insurance is much safer than canceling it.

According to the AA Insurance Supermarket, an independent insurance broker allied to industry stalwart the Automobile Association (South Africa), revealed that last month multiple customers consulted on cancelling their vehicle insurances and also reviewed their budgets, but the AA Insurance Supermarket has made it clear that they are sturdily against insurance cancelation.

“The effects of the national lockdown have already begun to show with many businesses either scaling back operations or completely shutting their doors. For personal consumers, the weakening economy also has serious consequences, with many reconsidering their monthly budgets. Many people are thinking about ways to cut costs.” said the AA Insurance Supermarket Managing Director, Shaun Neuhoff.

“During and after the lockdown people are investigating ways to reduce or eliminate the cost of car and home insurance. Totally dispensing with insurance is a dangerous financial tactic, one that actually ends up costing more than saving money. Instead, look for ways to reduce costs rather than eliminate them - but, canceling your insurance policies wholly is not an option I’d advocate as this reduces the extent of your cover, and places you and your assets at great risk. Reducing costs does not have to mean canceling policies; it’s not an all-or-nothing scenario,” advised Neuhoff.

Neuhoff recommends that motorist should research insurance products and quotes that will help to save them money without opting for canceling. He explained that the extent of your cover should remain the same to avoid any additional risks if you decide to change to a cheaper insurer.

It is very important to protect your assets even if you are running low on cash - weigh your options so that you don’t have regrets in the long run.

Pearl Mwale