Is Insurance Really That Important?

By Tokkie Ferreira       Last updated Oct. 12, 2017

This is a question that we all face: Is insurance really needed or is it just a gamble against an unknown future?

This question brings with it a heavy decision that we all face as we try to determine the pros and cons of insurance in our daily lives.

Your assets are important to you and you have already spent money on them. There are pros and cons of car insurance and home insurance, so we will list a few here:



Personal Car Insurance

If you haven’t been in a car accident yet, the chances are very high that you will at some point. Basic car insurance coverage costs a reasonable amount per month, but the payment is worth the peace of mind.

Personal car insurance can cover the driver and their family in the event of a car accident. It can also cover the other driver, cars involved and medical bills. Not only that, but car insurance can also cover other events such as locking a key in the car, needing a replacement key, or a rental car. Car insurance comes in different prices and packages, depending on your need.

There is one to meet almost any budget. There are also ways to cut the cost of car insurance to make it more affordable. By having basic insurance, it will keep you covered when you need it most.

The truth is that we do need it. Accidents do not come with warnings. It is better to be prepared than in an accident and not be able to pay for the repairs, the other car or any medical bills that might arise. A small monthly payment to ward off future astronomical amount is worth its price in gold.

The last thing we need in the event of a horrifying accident that leaves us rattled and confused, is the terror of being uninsured and facing a huge financial burden.

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This insurance is for the protection of your home. We want to keep our home in a good condition and our belongings safe, but is insurance really needed? Here are some pros and cons:

Home insurance is needed to purchase a home. If you ever want to purchase you need to have an insurace policy in place. This policy helps to protect your home from theft, damage, fire, flood, and other natural disasters.

There are two different types of insurance that can be purchased. Home insurance covers the buildings on your property. The other type of insurance is called Household Insurance which covers your furnishings and items within your home.

All it takes is one storm (like the recent ones we experienced in Johannesburg and Durban), earthquake or fire to destroy our home and all that we have. In that scenario, wouldn’t it be better to know that you have insurance there to pay for the damage or replace things that you lost, rather than not be protected against the cost at all?

The premium depends on your property value, location, and the policy you choose. Policies must be updated yearly. If it is not updated, you run the risk of not having your insurance company cover the damage properly should something arise.

There are things that the insurance company will not cover. Be sure to read the small print and understand every aspect of your prospective insurance before you sign. Home insurance may go up each year depending on the market value of the home.

Car and home insurance are both very important and insuring your assets should not be taken lightly. This costs money, but the load can be lightened and brought down to a cheaper price when you bundle them together into a package deal.

So with that said, we believe insurance is absolutely necessary to ensure peace of mind and security at times of uncertainty.

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