Due to the uncertain and challenging times that came with 2020, many individuals, entrepreneurs, SMMEs and corporates have cut back on essentials and tightened their belts.
A few of these essentials include medical expenses and insurance, as a result of dwindling savings.
While the world perseveres through this challenging time, the one essential that should not be cut from any budget is vehicle insurance, particularly if your vehicle is your main source of income, or if you are the owner of a small business.
Insurance is vital for your financial protection, particularly if you own a minibus taxi, bus or e-hailing vehicle.
“Passenger and driver safety must remain top of mind regardless of the times we find ourselves in. Cutting back on insurance benefits and liability cover or, even eradicating it from your budget, makes for more precarious times as a taxi or bus owner.
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“Doing so could result in more debt and, in certain circumstances, compromising on the quality of vehicle parts and repairs should you require these,” said Oscar Shabalala, business development manager at CTU.
While it is understandable to react by cutting costs, wisdom denotes pausing, acquiring all the facts and making a sound decision in line with your budget and the helping hand of your broker.
“If you find yourself in a financial predicament, get in contact with your broker and express your concerns with them. Your insurance broker has your best interests at heart and is likely, at the very least, to offer you a restructure of your cover or help you in ways you wouldn’t have thought of,” said Shabalala.
“Credible insurance companies value their policyholders, not just as clients but as people. Trying times should never place you in a panicked position feeling that you must cut back instead of choosing the route of consultation with your insurance partner,” he said.
“If you’ve recently purchased a vehicle and need insurance, choose service providers who have a variety of budget-friendly options suited to your transport company’s needs.
“You don’t have to break the bank but you can ensure your transport enterprise never faces problems due to an accident, an unpaid claim or even a lawsuit. Whatever you do, don’t cancel your insurance policy.”
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