It doesn’t matter what you watch, what you read the news of the day, month and possibly year is the credit crunch that is going to take away our homes and reduce our pensions. It doesn’t matter about the typhoon in Burma or the earthquake in China the credit crunch is here and everyone is going to be broke.
This obviously affects our buying habits and products or services we don’t need start getting put on the shelf. An example of this is breakdown cover, yes it is an insurance policy, but no, it is not compulsory by law and it is very easy to assume that next year your car, bike or van will not have a mechanical failure whilst on the road.
The balance here is money and if you were to have a breakdown, any saving will not only be wiped out but there is a good chance it will cost you considerably more than the breakdown cover policy would have. In short these credit crunch fears and avoidance of buying insurance may be false economy during time we need the money most.
The second possibility is to reduce your breakdown cover policy to say a basic roadside assistance thinking that at least some cover is better than none, just to find you and your car stranded somewhere miles from home and the best to happen is a tow to the local garage. Just because it hasn’t happened last year is no guarantee it not occur this coming one.
What may be good for the consumer is the upcoming or current price war that tends to occur during quite times. If quantities are down, it is possible that breakdown cover prices may be reduced just to get your money and loyalty. There has always been tough competition amongst the emergency service providers, but nothing brings prices down like a recession, especially when fuel prices are the highest they have ever been, putting a bigger hole in motorists pockets.
So the message is this, stop letting the media determine your financial decision and you should continue to do what is right for you. It could be that breakdown cover is something your have needed in the past and still will, even with a credit crunch all around us.