Because some journeys are better taken together. Let's walk the talk. Seven eight minutes nine is two five o'clock. Let's talk about the importance of short term insurance. Serena Johnson is joining me on the line now short term insurance specialists that consult by momentum. Serena, very good morning and welcome to the show.
Hi Africa, thank you very much for having me.
I know that during COVID times, when people's earning potential was severely restricted, one of the first things that went was short term insurance. And I think some people who perhaps continue to have a very tight wallet have not gone back to purchasing short term insurance. Why is it important to have short term insurance?
So? I think in South Africa, every rand counts on things like range, school fees and croceeeds, and most families are living from paycheck to paycheck, as you much know, and not much is less for saving. So when budgets, titan insurance often goes first, and it's seen as the grudge purchase, like paying for your membership you never use. I think a lot of people fail to realize that it isn't a luxury, It's actually a safety net that keeps your life running when everything.
Else falls apart, because there are some people who will go, I'm going to be paying the short term insurance for years and years and years and years and years and then nothing happens.
Yeah, I mean, I mean, I think a lot of people think that being careful helps, and I do think it helps, but I mean accidents, storms, breakings. I don't think they really check how contiously are. You could be driving perfectly only to be hit by someone else, or you could come home to a broken window, and savings can help. But if your car is written off or your home is damaged, I don't think that wouldn't that
would be enough, Because I mean insurance. I think it's fulls the gap we caution even saving.
For short Yeah, and I think it's absolutely one hundred percent what you say. You could be as cautious and care for a driver, but it is a driving behavior of a fellow driver on the road in South Africa that might result in damage to your property for example.
Or yes, most definitely.
Yeah, what are the biggest financial risks that we face if we do not have appropriate short term insurance cover?
So we think of it as you know, imagine waking up and your driveways empty, your carbon or coming home to a living room that's been completely ransacked. And these aren'tre I mean hundreds of vehicles disappear every day across the country through theft or hijacking, and it's leaving families standard and scramming to find a replacement on short notice.
And then you consider home hit by sudden disasters like floods or fires that wipe outing in an instant I mean one devastating flood if you think of it in Casenen, I think it was April twenty twenty two. Thousands of homes are destroyed, and many without any insurance, and it forced families to rebuild from scratch, with nothing really to fall back on. And it's never just the one thing.
I think you lose your car or your home and suddenly you're borrowing money, missing work, paying school fees late. It's not just I think it's not just about replacing these things, but it's your routine, your peace of mind, and your ability to keep going.
And then the all important questions are on how much insurance is enough, because there are arguments that can be made that some sectors of society are possibly over insured.
Yeah, I mean definitely. So I mean I think I would consider insurance as like part of your essential so right alongside rent and food and electricity and transport. I mean, and has cast claims many families you know they tried to from the extras, but I mean, in my opinion, I think insurance should stay. It's not optional, it's vital. And with everything from groceries to petrol becoming more expensive,
I mean, you need to make every rank count. So that means deciding what you must protect, so your car,
your homes, the gadgets that help you work. I think these are the things that you would want to get covered first and would say to make it work, I mean, just imagine setting on one treet, maybe fewer takeaways or streaming services, and that small monthly saving can fund your premium and preserve your whole routine, you know, for one of those things, and when life surprises you a visa verse or your car gets damaged, that insurance is what
keeps your world running without borrowing or compromising on both. And smart budgeting means reviewing regularly. You know, if you ask somebody that has insurance and consult with your advisor. I think in that one of the things that consult does really well is that putting advice first. So if your premiums rise, just your exist or fund the qualities to get a better rate and that way you stay covered in control of your finances.
And it's always important to know what you actually covered for. A friend of mine took out cover for her car thinking she could do all sorts of things, and then she needed to change her tires and then she was told, oh, sorry, this is not covered. It was a surprise, and definitely she still had the resources to be able to change her tires. I mean it's a fancy German car, so it wasn't a cheap set of tires, but she just
didn't know that it was not covered. And it's important to know what you actually covered for and more importantly what you're not covered for.
Yes, definitely, I mean you want to seek the professional advice, you know, that's where insurance grow. Insurance brokers can help tailor planet fits your needs and budget and do all the explaining, you know, that's what they is. Therefore, they have access to multiple insurance and they can negotiate better deals on your behalf, ensuring you get the best value for your money. No extras, no everspending. Yeah, I mean remembering insurance isn't an expense, brilliant investment in your peace
of mind. So talking to someone and taking these small steps I think it can definitely secure your coverage without straining your finances.
Sarona, thank you very much for your time this morning. Thank you for reminding us why it's important actually to have short term insurance. Sarena Johnson is a short term insurance specialist that consult by momentum