Every year, your car or household insurance policy is automatically renewed. More-often- than-not, clients allow their policies to simply ‘tick over’ without consulting their broker or insurer.
This lack of consultation could result in a situation of over or under-insurance, something that could ultimately hurt the pocket at claims stage.
It the perfect time of year to start thinking about spring-cleaning your insurance policies for the new year and who knows: it may even save you money in the long run – so give us a call.
Adjust the amount you’re insured for
The main reason for reviewing your policy is to make sure you’re insured for the correct amount – this is what insurers call the ‘sum insured’ or ‘limit of indemnity’. In the past couple of months, you may have bought a new bike, an adventure trailer, or even a new tv, cell phone or laptop, which means you’ll have needed to adjust the ‘sum insured’ of your contents/home insurance cover.
The structure of your home
If you’ve enhanced the value of your home by replacing your roof or redoing your kitchen you’ll need to increase the amount your house is insured for too. Your house (its structure) and your belongings (the contents of your home) must be insured at their replacement value – that is, what it will cost you, at the time of a claim, to replace the building (your home) or your belongings with similar or new structures or items.
Your car should be insured at a ‘reasonable market value’. Reasonable market value is the retail value, which is what a dealer would sell it for, considering its age, the mileage, the condition of the car and any extras. If you’re wondering what your car is worth, give us a call, we can help calculate the estimated retail value and adjust your premium accordingly.
Generally, you can also pay a lower premium if you increase your excess payment. Be careful though, even if you save by having a lower premium on a monthly basis, you should be able to afford the high excess amount if a loss occurs. Other additional cover that you don’t really need can also be removed to lower your premium.
Pop by our office, or call us on 044 382 0550 to chat about spring-cleaning your policies and for more tips on how to save on your monthly car or household premiums.
* This article is provided for informational purposes only and should not be construed as legal or financial advice.