20 January 2009

Tip of the Day January 20, 2009

Learn from Byron's mistake

Byron learnt the hard way not to cancel insurance policies early. He had sold his cute little red Mercedes convertible and taken a cash deposit. Being confident that the sale would proceed, he rang up and cancelled his insurance policy on the car two days before it was to be picked up and paid for. Driving home from work that day he was in a three car pile-up on the Harbour Bridge and managed to write the car off - along with the cash deposit! He was left with no car, no sale and no insurance. Thankfully in this instance the car was fully paid for.

Never, ever, cancel an insurance policy until you have a permanent replacement policy in place (and a cover note just won't cut it). There are any number of reasons for insurance claims to be denied so you need to have proof that the policy has been accepted and a receipt number for the payment firmly in your hot little hands (or neatly filed away in the insurance sleeve of your Bill folder). This applies to car, health, life, home and contents - any insurance you may have.

Even one small accident can wipe out an entire emergency fund and more so don't take the chance.

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