Nothing showcases the unpredictability of the future like the current global pandemic. Last year proved that there are many events we can’t prepare for. That being said there are many unexpected events we can prepare for. With uncertainty being the flavour of the last 12 months a spotlight has been turned on risk management.
How we manage our risk can determine our future lifestyle, stress and comfort levels.
What is Risk Management?
Risk management applies to several aspects of our lives; employment, family, health and home. Looking at employment, recent events have shown that job security is hard to come by. Occupations which were once seen as secure and successful have had to adapt and make several adjustments over the past 12 months. In light of current events have you made provision for a plan B or even a plan C?
If you lose your job, have you got a plan? How are you going to earn an income? If you have a plan well done, you have managed your employment risk well. If you don’t have a plan, start coming up with one. Perhaps learning new skills or upskilling to make yourself more employable.
There is nothing more disheartening than dealing with theft or damage to your house, car or other possessions. Short-term insurance provides a way in which you can manage your risk against accidents, theft, damage and even maintenance.
Short-Term Risk Management
Your home, car and other assets are very valuable and are susceptible damage, theft and maintenance. Insurance is an excellent way to manage these risks. When protecting your home, car and other possessions short-term insurance is the most affordable way to mitigate your risk. If you find yourself without insurance a good starting point is to list all items you would not be able to replace if you lost them. For most people, this would be their house, the stuff inside their house, their car and maybe a few expensive items like cell phone, laptop and bicycle.
1. Cost-cutting can be costly
this is a bit of an odd first tip as the article has a strong influence on saving money. It is critical to note though that changes should never be at the cost of quality insurance. Call centre insurance does not provide advice and often their marketing is excellent and their products inferior. Always do your homework.
2. Apply for the cover you need
don’t overinsure and more importantly don’t underinsure, being incorrectly insured can land you in a world of pain at claim stage.
3. Be up to date with your policy
you want your policy to be valid so that you can claim. Always update your personal information. If you get upgraded to secure parking at your office it could reduce your premiums.
4. Do not just cancel, chat to your advisor
if affordability is a challenge, speak to us we can consider alternatives. Often we see small changes can have big savings.
5. Driving less, you should pay less
with lockdown, you may be driving less if you are working from home. Contact your insurer and ask for a review.
6. Tighten your security
installing an electric fence and alarm system may lower your insurance premium. Investigate installing a tracker, some insurers may lower your premium. Sometimes it is a simple as finding secure parking.
7. Make your next car white
it is true that the lighter the car, the safer it is. Light cars account for 30-35% of accidents, while darker colours account for 60-65% of crashes. https://idaoffice.org/posts/the-relationship-between-accident-rate-and-car-color/
8. Combine your policies
insuring both your home contents, car and all risk items on one policy will reduce your premium and provide more comprehensive cover.
9. Don’t be shy, look for the best deal
If you have a good claims history ask your insurer for a discount. Chat to us, we can do a negotiate on your behalf.
10. Your excess matters
one of the ways to decrease your premium is by choosing a higher excess. Bear in mind that in the event of a claim the excess will be for your pocket. Shouldn’t be a problem if you have an emergency fund.
- Compare like for like products. Make sure to do proper comparative quotes.
- Regularly check that the values on your policy match your assets. Make sure they are covered for their current replacement value.
- Take an advanced driving course if you have a high-performance car. These cars usually attract higher premiums.
- State to your insurers who the regular driver of your car is so the premium can be calculated accordingly.
- Inform your advisor changes you plan to make to your property
- Don’t delay changing your cover if you discover that you are underinsured.
- Don’t take what a call centre says as gospel. This is true for proper insurers as well as direct insurers. If they say something that doesn’t seem right, investigate further
- Don’t claim too often. Your premiums will increase if you claim frequently.
- Don’t omit information that could affect your claim because you want to pay a lower premium
- Don’t cancel and reinstate your insurance often. It is better to have uninterrupted insurance history.
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The information provided is not intended to address the specific circumstances of an individual and is only for information purposes. Should you require financial advice please contact us firstname.lastname@example.org