Why it's wise to keep your car insured
When dealing with stress, you might find yourself trying to simplify your life. A sensible means of doing so often involves cutting out certain monthly expenses. You might find yourself having to sacrifice that gym membership, that magazine subscription, or those regular trips to the spa in order to save proactively. It’s a beneficial habit to cultivate, but in some cases it can prove costly. Medical aid springs to mind, what with doctor’s appointments and hospital visits usually costing a substantial amount of money, but its necessity makes it too valuable to discard.
And then there’s insurance. Depending on your personal and financial circumstances, you’ve likely taken out insurance on at least one of your possessions. The most common of these is more than likely your car, for a number of reasons. Firstly, it’s your primary means of getting from one place to another. Secondly, it’s an expensive long-term investment. Lastly, it’s vulnerable to a range of mishaps and dangers, such as damage or theft, that threaten to leave you in an unwelcome financial predicament and, if it’s a worst case scenario, without an immediate means of transport.
This is why it is never advisable to cancel your car insurance policy. This does become more appealing at the start of a new year when premiums go up and financial resolutions are being made, but it could spell financial trouble if your car is damaged or stolen. In fact, insurance is particularly necessary during the festive season, given the prevalent combination of exuberance and alcohol which could lead to unexpected claims. However, it’s not the only reason to keep yourself covered.
There are plenty of situations in which your car could be damaged, totaled or stolen. Whatever the incident, the repair or replacement costs you’ll face without insurance will far exceed the costs you’ll face with it. Speaking to The Citizen, Eugene Herbert, managing director of the driver training company MasterDrive, states, “even a relatively minor incident that puts your car out of commission can be devastating. You may be left trying to pay a bill that reaches into the thousands and if you do not have the money, what do you do then?”
If you’re still in two minds about keeping your car insurance, then have a look at your insurance policy and see exactly what it covers. You might be surprised at just how well-protected you are against the loss or damage of your vehicle. A sound insurance policy should cover you for events such as car accidents, windscreen breakage, fire, hail and flood damage, theft and hijacking, and towing and storage. You can also be insured for the loss of, or damage to, certain car parts, such as the canopy, spare wheel, sound system, and even your car keys.
You might be pleasantly surprised by some of this information, in which case you should hang on to your car insurance policy. If little to none of it sounds familiar to you and you do have insurance then it would be wise to investigate what other policies there are out there that could suit your needs. Also remember that there are other ways of saving money while owning a car that don’t involve cancelling your insurance. One way would be walking to a given destination, if it were close enough, instead of driving, thereby saving fuel. There is also the option of adjusting your insurance premium according to the book value of your car, as well as removing unwanted or needed extras.
No matter your financial situation, always keep your car insured. You’ll be grateful you did should the unexpected occur. Hopefully it won’t, but it’s always wise to be prepared and covered in case something does go wrong.