We should be in the habit of regularly reviewing our insurance cover, but if you haven’t done so for a while, COVID-19 lockdown is the perfect opportunity to make sure you have the correct cover in place and even save on premiums.
You may find that the cover you have no longer matches your needs.
When it comes to car insurance, a two-car household now working from home can reduce cover on their second car not being used for grocery purchases or other short, necessary, trips. If the second car is parked securely on a premises and not being used, either reducing the cover or increasing the excess will result in a substantial saving.
If you are working from home in lockdown – or not working at all – you could review your all risks cover. All risks cover insures your items even when you take them out of the home, so it usually includes laptops, cellphones and jewelry. If you are not leaving home with your laptop, you could remove it from all risks for a few months, although it must still be covered under your household contents insurance.
On the other hand with many employees working from home, some may have been given laptops by their companies which are not included in their household contents insurance, so you need to check with your company that it has insured your laptop.
Now is also the time to shop around for competitive quotes. It is a tough market out there and insurers will be prepared to negotiate better rates to win over good clients with a clean claims record.
Some insurers are prepared to offer discounts of up to 10% if you pay your premiums annually in advance. This may be something to consider if you are retrenched with a lump sum – at least you know your insurance remains in place.
Don’t just cancel your insurance because you are financially stretched. Having a car accident or your laptop stolen would add further financial pressure. Rather speak to your insurer or broker to work out a plan for reduced cover than having to cancel and being without any cover at all.