Hello Mabs
My insurer says I can pay less every month if I increase my excess. I said I’d think about it, but honestly, I don’t understand what I’m agreeing to. Is there a catch?
Mabs Answers:
There’s a trade-off, and you deserve to understand it. Your monthly payment keeps your cover going. The excess is the amount you contribute towards an approved claim, according to your policy.
A higher excess can mean a lower monthly payment, but more money to find when something happens.
Ask your insurer to show you both options in rands: how much you save each month and how much you could have to pay when claiming. Also ask whether any additional excesses could apply.
If finding that lump sum would mean missing rent or borrowing money, the monthly saving may not work for you. Choose with both figures in front of you.
