Most kinds of insurance work in similar ways. You pay a set premium to your insurance company and in return, you get insurance cover, which gives you financial protection in case you suffer loss.

Here are some things to think about before signing an insurance policy:

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  1. Shop around

    Do your homework before you commit to get the best deal possible. Get at least three quotes from different providers and compare.

  2. Should you pay up front?

    Some insurance companies offer a discount if you pay your premiums up front for the year instead of paying in monthly instalments. Depending on your insurance provider, you may even get a discount for paying online.

  3. Ensure you have the right cover

    Your goal should be to have just the right amount of insurance. If you pay for too much cover, you’re wasting money.

  4. Consolidate

    Try to get all your insurance from one provider. Some companies might offer a discount if you have multiple policies with them.

  5. Reduce your claims

    If you lodge claims for every little thing, your premiums will go up. Insurance is meant to cover large unexpected losses, not every trolley ding you get in the supermarket car park.

  6. Take care of the things you insure

    A well-maintained car is less likely to have an accident due to mechanical failure. If you take care of your house, it’ll weather the ravages of time. And if you exercise and eat right, you’ll get cheaper life and health insurance.