The Best Time to Review Your Budget Insurance Policy

Balancing budgets isn't easy, but it is possible. To keep abreast with the constantly increasing cost of living and carve out savings where possible, you must regularly and critically review your expenditure. Even if you pride yourself on knowing where every cent of your salary goes, revisiting your recurring bills could highlight forgotten payments you make that you could optimise to save money. Many people set up their insurance debit orders and forget about them, not realising that their needs and coverage requirements may change. Here's how to ensure your Budget Insurance policy (or any other insurance product) delivers what you paid for.

What is an insurance policy review?

An insurance policy review involves scheduling a meeting with a professional advisor who will objectively assess if your current needs and circumstances have changed since you first took out the policy. They can then help you identify possible coverage gaps, determine if you need to increase or decrease any policy limits and see if there's any way you can save money (for example, by increasing your excess or offering you insurance bundling).

Why it’s a good idea to review your Budget Insurance policy

Short-term insurance is a useful tool for managing life's unexpected setbacks without disrupting your journey towards meeting your financial goals. You would probably prefer not to use it, but certainly appreciate what it can do for you when needed and the peace of mind it affords us. That's why many people 'set and forget' short-term insurance after taking it out, only paying attention to it when they need to make a claim, want to look for another insurer or decide to cancel insurance altogether.

Because our life circumstances and needs change, reviewing your Budget Insurance policy periodically is essential[1]. Since an advisor can help you through it, you don't need to navigate it independently.

When should you review an insurance policy?

Now that you know you should review your insurance policy, you're probably wondering how often and when you should do this. While doing it annually is the usual recommendation, the following list of questions can help you create a review schedule that works for your unique circumstances:

1. Has my life or lifestyle changed?

Major changes to your lifestyle could necessitate an insurance review. This could include getting married, divorced, having a baby or making a major financial investment or purchase. Other life changes that can prompt you to revisit your insurance include nearing retirement age, which can require you to upgrade the comprehensiveness of your current insurance products. You can also reassess your needs after placing a claim or experiencing a loss. For example, an insurer refusing to honour a claim could prompt you to seek another insurer.

2. Has my property changed?

Buying or selling a home or renovating your current property can require you to revisit your insurance. For example, adding a new room to your home or a pool to your property means that you must update your building insurance to cover these additions so that you can claim for them if they are damaged or require construction work.

3. Has my business changed?

Business owners typically review their operations when they make significant changes, like acquiring another business, investing in new assets - like equipment or property, or expanding into a new industry or territory. These changes and ones like them will require revisiting your Business Insurance. 

4. Has the insurance market changed?

A change in the insurance market can necessitate an insurance review. This can include changes to the insurer's terms of operation or the regulations governing a particular insurance product to ensure it remains legally compliant. Changes being suggested concerning the Road Accident Fund Act are an example of what could occur. This amendment could impact the ability of drivers, passengers and pedestrians to claim compensation for injuries. Should it be passed, it may prompt drivers to switch to a more comprehensive form of car insurance to accommodate for the higher likelihood of third-party claims after an accident.

5. Have cybersecurity concerns changed?

Businesses today need to have a trustworthy online presence. Failure to secure one or keep your customers safe from cybercrime can negatively impact your sales. Budget Insurance offers complementary Biz Assist services that enhance your existing business coverage. For example, this service can help you set up and secure a social media presence and handle, so customers know they're interacting with the real business online and not a potential scammer.

Tips for reviewing your Budget Insurance policy

You must understand your current needs and possible risks to ensure your insurance provides the necessary coverage. If you aren't sure what you should be looking for when assessing your insurance, here are some tips:

• Start with exclusions — it's often easier to start by determining what you don't want to be covered than with what you do. This can help you ascertain what exclusions or limitations you are happy with.

• Read the fine print — when you take out a policy, make sure you read the fine print to know what limits, deductibles, waiting periods, and costs will apply. It's best to ask any questions you have as soon as possible. You should also pay attention to any correspondence sent to you, which could include details on changes to your insurance.

• Adjust for time — costs tend to increase over time, impacting the deductible amounts you've opted for or your liability coverage limit. Accounting for inflation or changes to your financial circumstances can indicate whether you need to lower or increase these amounts to prevent over- and under-insurance.

• Get professional help — asking for expert advice from your insurance advisor or broker is always wise.

• Explore savings — ask your insurer if there are any conditions you could meet that could save you money. This can include insurance bundling for a lower overall premium or cashback bonuses for remaining a customer after several years.

Get a Budget Insurance quote

If you are ready to review your Budget Insurance policy, remember that you don't have to do it alone. Our insurance consultants are there to help you and can clarify any uncertainties about your policy. Get the advice you need to optimise your coverage. Contact us today for a Budget Insurance quote to get started.