My partner and I recently got engaged: we’ll be starting our lives together soon, making this the best time examine our financial condition: where we stand at this time, what we need to still apply for and how to get where we want to be. Of course, we want to be financially secure, who doesn’t? We want to be able to live our lives to the maximum. We want to be able to support each other, should something happen to either of us, and we want to be able to provide abundantly to our children one day. But where do we begin? My partner owns a car and has a car insurance policy in place, but I don’t. I live 2 minutes away from the place of work and feel it unnecessary to pay for two car insurance policies where we only need to pay for one. We don’t own a home, yet. Neither of us have our own business, and we don’t really have a lot of precious belongings. Sure, we have a tv set, a radio and possibly a vintage painting or two that needs to be insured, but is it enough? Are there car and home insurance policies available to suit even our odd needs? We thought not; how wrong were we!

During the past holiday, we spent some time researching car and home insurance and found out that there are numerous points to consider before applying for a policy. We found out that a person’s age, gender and marital status, along with their driving history and credit records all have an effect on the policy premium rate. For instance, my partner is turning 26 in a couple of months and wants to take out a new policy. If he waits until after his birthday, his premium on auto insurance can be reduced by about 20% because people aged 18 – 25 are considered reckless and the risk of them being involved in any kind of collision or accident is higher.

Women, however, are thought to be angels while travelling. Our car insurance premiums will be sufficiently lower than that of men because we are considered to be more responsible and better drivers than men. It’s times like these when I really love being a woman! Things like where you live, how much you drive and where your car is parked through the night also influence your premium directly. And don’t even think about lying on your application form, because should the truth come out prior or even after an accident or claim, the insurance company will immediately cancel your policy.

Car and home insurance is no laughing matter. We found it to be very confusing at times. So we decided to find a broker to deal with our home insurance. Choosing a trustworthy broker was difficult, but worthwhile. After exploring several different policy options from different companies, we decided to wait until we’re legally married before applying for a policy, but at least we now know what to expect and what to prepare for. Insurance is a vitally important part of a family’s life: it is a form of risk management. It forms the building blocks of your financial house, and if it is missing from the puzzle, your financial state may come tumbling down any time; you never know what might happen, so always be prepared.

For more information on motor vehicle insurance quotes, go to http://www.afi.co.za