Times are difficult, prices for goods and services are on the rise. Many people struggle to make ends meet. One of the choices one has is to cancel certain insurances or all of your insurances to save on expenses. Before you consider canceling your insurance rather consider if there are no other options to cut expenses.
Some better options instead of cancelling your insurance.
- Spend less money on entertainment.
- If you are a smoker or consume alcohol, see if you can reduce or quit all together.
- Don't buy ready made meals rather cook yourself a healthy meal.
- Think twice before splurging on unnecessary items.
- Try to reduce electricity and water consumption.
- These are some of ideas which can save you money, and by thinking out of the box you might come up with other money saving ideas
Why you should not cancel insurance, or at least not all of them.
Many people see insurance as an unnecessary expense as they see no value in it and don't benefit from it. Many people think it is a right to get something out of their insurance and after many years of paying premiums they see no returns, but one should consider why one has insurance.
Insurance is there to cover you when the unexpected happens. Think about it. Can you afford to replace or fix your car when involved in an accident, or can you pay damages to a third party. A small dent yes, and you probably don't fix it. But what if your car is a write off?
You still might have finance and those payments don't stop. Can you afford not to have a car? Many people do need a car to either perform their job or to get to work. Your financial situation might become a lot worse if you are not insured and something happens.
This is just one example there is house hold content insure, building insurance, medical aid etc.
Canceling your insurance is a bad idea, but there are still options to save on insurance.
- Shop around for better prices, get quotes from several insurance companies.
- Consider rising your own risk, you are still insured, but might have to pay a higher excess when claiming.
- Make sure you are not over insured
- Consolidate your insurances with one company. They normally give you a discount.