People in Flanders are among European leaders when it comes to the amount they spend on insurance. Only people in two other European countries pay more. It’s crucial to have insurance cover where this is necessary, but in some cases, people are chucking money out of the window. Laura Clays of consumers’ organisation Test Aankoop suggests people could easily cut costs and still have good coverage.
There’s a hard sell on insurance for smartphones nowadays. People are often inclined to take up such offers, because a mishap with your smartphone isn’t that hard to imagine. Insurance companies see a clear opportunity here, but insurance experts warn that smartphone insurance cover is often very expensive and doesn’t always cover many eventualities.
“You won’t be compensated if you are negligent. Forget your phone in the bathroom and suddenly you face a humidity issue. Is this negligence? It’s the kind of situation in which you expect compensation, but you simply won’t qualify” says Laura.
“Smartphones are very vulnerable to scratches and the screen shattering, but as long as your mobile continues to function, there’s no compensation for you”.
Buy a new car and people get all-risk insurance, but such comprehensive insurance is very expensive because you will be fully compensated if your car if a write-off.
“Comprehensive insurance is only interesting when your car is new and while you have a car loan to repay. Switch to a more limited form of all-risk insurance after 3 to 5 years or pick third party car insurance cover.
Many consumers have several legal aid insurance policies on the go at the same time: one for your car, a second on your fire insurance and a third on your travel insurance. The legal aid provision can be used when there is a legal dispute. “People often tick the box on legal insurance because it’s a small extra cost, but the legal aid is only provided with regard to problems involving this type of insurance. Add up all your legal aid premiums and it becomes a tidy amount” says Laura. She recommends you take out one large legal aid insurance that covers all eventualities and get rid of all the smaller ones. Separate legal aid insurance is also tax deductible.
Our expert also insists you compare the various insurance offers on the market. It’s not always easy but different companies offer different cover. You can also negotiate your premium with your insurance man or woman. “If you’ve got a burglar alarm, the risk you’ll be burgled is smaller. You can ask for a smaller premium. Is your car is equipped with special assistance mod cons, request a discount on your car insurance!” says Laura.
Consider increasing the threshold at which an insurance policy kicks in and provides compensation. This will cut your premium, but make sure you can foot the bill if damage doesn’t reach the threshold for coverage.