The recent price hike has affected almost every aspect of our lives. Not only that but it has also impacted all the sectors greatly. The inflation and ever-increasing prices of basic necessities have everyone on edge and people, especially the middle class, have cut down all of their expenses greatly to an extent where they reconsider a hundred times while getting. 

With this comes the concern about the insurance industry and if it will affect the premium and coverage. Let’s Compare Online is here like always to help address these concerns and what inflation means for the insurance industry. Let’s look at some concerns our clients might have!

Does Inflation Affect The Premium?

As far as the insurance industry is concerned, it stays mostly unaffected by inflation. This means that the premium does not get affected by inflation. This is due to the fact that the coverage is in USD and since that remains unaffected for a certain policy that you are buying then the premium remains the same too. However, the coverage might get affected.

How Is The Coverage Affected By Inflation?

Inflation directly affects the procedures taking palace to aid your recovery. Let’s say you have coverage of USD 2,5000, a year or two back you could get full hospitalization along with pre and post-hospitalization on your travel insurance Pakistan. But now you may not get pre and post-hospitalization cover due to it not falling under USD 25,000. Due to this, you might need to buy an insurance policy with an adequate cover of USD 50,000 or above. But with this increase in coverage, your premium will automatically increase due to an upgrade in the plan. 

However, if you think that your medical coverage is adequate and you only need less of it then you do not have to worry about the premium because the premium will remain the same.

Does Car Insurance in Pakistan Get Affected By Inflation?

Depending on the type of insurance, your premium gets affected. The premium of the car will increase since it depends on the price of the car. For instance, EFU’s premium is 2% of the price of a car so the more the price increases the more premium will be. Also, since all the services are paid in PKR in case of any claim, the prices will respectively increase too. So yes, the coverage of the car gets affected by inflation too!

How To Cope WIth These Effects On Coverage?

We understand the concern of the public about this price hike and we are all rightfully worried about it and want to reduce our expenses as much as we can. This is high time to realize our role as responsible citizens and get ourselves educated on grave matters of society to avoid getting into bad situations both while driving and traveling. Make yourself more aware of your surroundings and avoid all kinds of trouble. Educate yourself on scams and hazards while traveling to save as much money as you can. It will always be handy to have some cash outside your policy on your hands so you can use it on your medical procedures without worrying about it getting short. 

Let’s Compare thrives on the trust of its clients and support from its followers. We take great pride in not only serving our clients but also educating them and helping them out with their queries. Our companies on board are best-known insurance companies across Pakistan and we work hand in hand with them to aid our client’s concerns.