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[LISTEN] Cancelling your car insurance a bad idea: expert

| Old Mutual's Christelle Colman says cancelling your car insurance can have detrimental consequences for you, especially if you took a loan to buy your car.

CAPE TOWN – For some, the start of the new year can be a difficult one due to the nature of spending over the festive season, coupled with the interest rate hike at the end of last year.

With the pressure of now having to save, some motorists may resort to as far as cancelling their car insurances. However, car insurance experts say this is not a good idea.

Christelle Colman, insurance expert at Old Mutual says of the 10 million cars on South African roads, only a third of that number is insured.

“So, what that means is that even if you are in a car accident and you are not responsible, and the other party is responsible, you cannot claim from them because they won’t be able to pay you back. So, cancelling your car insurance when you are in financial trouble is a very bad decision.”

Listen to the audio above for more.

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