When consumers in the current South African economic climate look for ways to
cut back on day to day expenses, few consider touching their insurance policies. To most people, the idea that one could change an
insurance policy is quite alien, and many are fearful that they won't be
properly covered in the event of an accident or other disaster.
An insurance expert, however, is showing policyholders that there several
things that they can do to save some money each month, all the while ensuring
that they are covered in the right areas.
One way suggested by Gari Dombo, the Managing Director of Alexander Forbes
Insurance, is to self insure. Self insurance generally means that the
policyholder builds up a kitty that will cover the loss of an important piece of
jewelry or other valuables and then removing that item from the list of insured
items. Dombo stresses, however, that items that are essential for the
policyholder's survival should not be un-insured.
"For example, things like cell-phones, rings and watches, along with most of
the stuff you use on a daily basis, are all replaceable at not so crippling
costs," said Dombo.
He also suggested that consumers reconsider the need for All Risk insurance
once they have built up a self insurance kitty to cover the small day-to-day
items.. "You might even decide that you don't need to ensure them at all," said
Dombo. "In the event that you were to travel abroad, you could always take up
temporary travel insurance."
There are a number of steps that people could take to decrease their risk and
therefore their insurance costs. For example, building a lock up garage may
reduce car insurance premiums drastically, while moving to a high security
residential complex may reduce theft cover premiums.
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