When times are tough and budgets are thin, freeing up money where we can is often a more attractive option than withdrawing money from savings or credit. With the impact of the COVID-19 pandemic on the economy, many South Africans are likely relooking their budgets and cutting off unnecessary monthly expenses. However, the risks and disadvantages of cancelling your car insurance can be greater than what you have bargained for. Here’s why.

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.

Momentum Multiply can give you cash back on your car insurance premiums

Momentum Multiply members get up to 30% cash back on their Momentum car and home insurance premiums.

You may also want to read this post on how Multiply can help with your daily expenses.