Here are some general tips on how to get the most out of your insurance policies.
- Shop around
– there is often a big difference between insurance providers, even when they offer the same level of coverage. And
check this periodically against other insurers as many insurance companies factor your age into the calculation of the premium.
As you get older, insurance premiums may go up or down, so it’s always worth checking again.
- Make the most of
multi-cover policies and loyalty programs, but only when they offer you good value for money. Many insurance
companies will offer a discount if you have been with them for a certain time (loyalty program) or if you insure several things
(car, house, life, etc) with them. This is great if it actually saves you money, but make sure it really does! A little bit
of investigating goes a long way in picking the right insurer.
- ALWAYS read your policy. ALWAYS. Know
what’s included and what’s not. There’s nothing worse than making a claim and finding out that you weren’t
covered for that particular event. For example, some house insurance won’t insure for flooding, if you live in a flood
prone area. Some health insurance won’t insure for pre-existing conditions. Always read the fine print and be fully
informed of what exactly you are covered for.
- Be aware that you still may need to pay an excess
for each claim – know what this excess is and allow for it in your ‘rainy day’ budget. You can sometimes
opt to pay lower insurance premiums, but with a higher claim excess. This is an attractive way of minimising insurance costs,
but make sure you can pay the higher excess if you do make a claim.
- Make sure you’re insured for the
right amount – as time goes by, your house value increases and so do replacement costs for cars, furniture
and personal effects. Make sure your insured cover also increases. Many people also under-estimate what their house etc. is
really worth, so get it professionally valued from time to time to be sure.
- When making a claim, always be
honest about what happened and what you’ve lost – don’t be tempted to ‘get a bit more’
as insurance cheats are punished severely.
- Investigate the ‘no claims’ bonus if you need
to make a claim. Is the money you get back from the claim just going to be eaten up with higher premiums because you’ve
lost your ‘no claims’ standing?
Like all aspects of managing your money, getting the most out of insurance
is about being suitably informed on all your options. So question your insurance companies, look around at the different insurance
packages available and talk over your options with someone you trust to get some impartial advice.
the final decision on what insurance you buy is up to you – after all, it’s YOUR money you’re spending to
protect YOUR wealth!
There is an insurance record sheet in the ToolBOX
, under the section on “Finance Forms” to help you keep track of your insurance policies.