Bertus Visser, Chief Executive of Distribution at PSG Insure

We often hear that failing to plan is planning to fail. This axiom is especially true when it comes to financial planning, but planning for failure could set you up to deal with unexpected circumstances far better. Short-term insurance tailored to your insurable needs adds a buffer to your financial planning.

Insurance can be a bit of a grudge purchase, since you may think you could end up not needing to claim. However, we should all realise that occasional failures are part of life and that they tend to have costly implications (at inconvenient times) if you have to fund them out of pocket. These could include everyday events such as an unexpected failure in another motorist’s judgement, a chance stone against your windshield, your cell phone’s unfortunate encounter with water, or your geyser bursting. When we fail to insure ourselves against every day, common risks, we put our broader financial well-being at risk too. Rather than only focusing on the cost of insurance, consider the benefits you gain from your policy. The industry has also come a long way in terms of its offering and the service experience clients enjoy – so some of the hidden plusses of being insured may even surprise you.

It isn’t only about claiming

Insurance is meant to put you back in a similar position you were in before an accident occurred, provided you remain within the terms and conditions of your policy. However, these days insurance not only helps to mitigate loss, but also offers many more benefits that aid us in our modern lives. The insurance offering itself has also become more flexible.

An example from years back would be that if you wanted a specific value-added service on your policy, you had to upgrade to a more expensive package. Today, you are more likely to have optional extras that you can add or omit based on your needs. These added options are often also more affordable than you may think. A great example of this is vehicle hire cover. Have you ever considered that if your vehicle  was in for accident repairs, you could be without your vehicle for several days and, depending on the parts needed, maybe weeks? While renting a vehicle for a week or longer may not be an option for you financially, having vehicle hire cover in place means access to a rental vehicle at a minimal processing fee. Next time you get an insurance quote, ask them what difference an optional extra like this would make to your total premium – the answer may surprise you.

The pandemic has shaped this flexible insurance trend even further – many insurers have highlighted that driving less can mean paying less.

Technology plays its part

Insurers have embraced technology to make the claims experience run far more smoothly. You can now log your own vehicle accident remotely through an app, and expect to be kept informed as your vehicle repair progresses in real time. Gone are the days of waiting for the landline to ring.

Gone too are the days where watching the weather report was your best guess for any risks to your commute. Your insurer can send bad weather warnings for hailstorms or flooding directly to your cell phone – offering you a valuable opportunity to avoid a loss. 

More value-added winners

Most insurance policies offer free ride services, so you don’t need to worry about drinking and driving (with 0% alcohol as the potential limit on the roads, this is really future-facing and for the best for everyone). 

In the event of an emergency at home, you may find that your insurance covers an hour’s worth of labour from a locksmith, electrician, or plumber. Now you can add these items to your policy.

If your vehicle battery dies, many insurance policies offer up to two jump-starts per year. Some insurance policies even extend your accidental cover to your pets for road accidents outside of your driveway. 

Is your plan in place?

Even the most cautious of planners needs a little help every now and then, and that is what insurance is there for. It forms part of the bigger picture and every picture needs a secure frame, like a financial safety net holding it in place. The fact that there can be perks hidden in your policy is a bonus (as could be some cash-back under some policies if you don’t claim for a certain time period).

Even if needing insurance often means a plan has gone wrong, your insurance experience can be a positive one. Instead of hoping for the best, plan for failure or accidents to arise from time to time, ensuring you have the right cover to help put your plans back in place.