“A big reason people do not take out short-term insurance is because of the false belief that ‘it won’t happen to me’, but this is an avoidance mindset,” Galloway said.
“Even if you are a terrific driver, you can’t account for the behaviour of everyone on the road, nor can you guarantee that nothing will ever damage your home or its contents.”
He added that even though paying the premium seemed like a hassle, it would likely prove useful in the face of an accident at home or on the road.
A second important reason for acquiring insurance, as stated by Galloway, was that taking out insurance is affordable and something consumers should budget for.
“This year, prioritise protecting the possessions you have worked so hard to accumulate [and] secondly, make sure you get the right insurer and the right package for your needs as it is crucial to protect yourself from incurring unnecessary costs,” he said.
The last reason Galloway mentioned was the relative cheapness of paying insurance premiums for assets compared to having to pay huge amounts at once to fix any damage that might occur.
He added that the biggest danger of being uninsured is finding oneself in a situation where something has gone wrong and you need to pay out huge amounts of money to fix the damage.
“It is always cheaper to pay a monthly premium now than to have to pay a huge lump sum when something goes wrong,” he concluded.
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