When times are tough, and budgets are tight, freeing-up money where we can is often a more attractive option than withdrawing money from savings or applying for credit. One can easily be tempted to cancel things like car insurance because it’s not tangible. If you’re considering this, we encourage you to carefully weigh the risks and disadvantages of cancelling your car insurance and explore alternative ways to save more. Here’s why cancelling car insurance is not such a good idea.
Good drivers need car insurance too
Car accidents are not only caused by your own driving. Someone else can drive into your car, and if they are unable to pay for the repairs of your car, guess who is going to be left with the bill? There are other situations in which you’ll be glad to have your insurance cover, like if your car is stolen or is damaged in a natural disaster.
You may be in breach of contract
If your car is financed, it’s likely the agreement was for you to maintain an insurance policy on the car until you have paid it off. Double-check the terms of your financing agreement before cancelling your car insurance.
Other ways you can save on monthly expenses without cancelling your car insurance
– Shop at our cashbacks partners like Pick n Pay and Dis-Chem to save as you spend on your essentials.
– Plan big purchases.
– Find ways to reduce your monthly premiums.
– Start earning Safe Dayz™ so that you can earn more points to improve your status. The higher your status, the more your discounts and cashback.
Safe Dayz™ is our way of tracking how safe you are when you are on the road. Just activate it on your Momentum app and keep your location settings on when driving to get started. You will be allocated a daily score the following day based on each trip you made on the previous day. If your daily score for all your trips in a day is 60% or more, you will earn a safe day.
Here’s a step-by-step guide on how to activate Safe Dayz™
Did you know?
Momentum Multiply members get up to 30% cash back on their Momentum car and home insurance premiums. Visit the Momentum rewards page on our website to find out more.
You may also want to read this post on how Multiply can help with your daily expenses.