As June 28 marks Insurance Awareness Day, it is an ideal opportunity to remind South Africans that insurance is a non-negotiable, financial lifeline and a get back on your feet solution for when things go wrong.
And things do sometimes go wrong.
According to SAPS, between January to March 2022, there were 40 960 home burglaries, a 19.7% increase in hijackings and 9 377 reported cases of car and motorbike theft. Thereafter, the KZN floods destroyed homes and washed away cars.
We are not talking about a minor bump or dent but a complete write-off and loss of hundreds of thousands of rand, which may lead to financial ruin.
WATCH
Peace of mind can be affordable
Many South Africans will point out that the cost of living crisis, including the record high fuel prices, makes insurance unaffordable. This misconception is why 70% or two out of every three registered cars on our roads are uninsured and when it comes to your home and home contents, some South Africans are underinsured by as much as 60%.
The fact is that now more than ever you must be insured. What if Budget Insurance told you that insurance does not have to cost a fortune and that by following just 10 practical tips to reduce your premium, peace of mind is a guarantee?
Here are 10 tips on how to ensure your premiums are not hurting your budget
1. Look out for opportunities to save
By insuring your car and home contents or your car and buildings with the same insurance provider, you could qualify for a discount. You can also save 20% when buying car insurance via Budget’s website.
2. Shop around and choose your insurer wisely
Budget Insurance offers some of South Africa’s lowest home contents insurance quotes and saves its customers up to R420 per month* – when they combine their home and car insurance.
3. Insure your car for the right value
Drivers of older cars must ensure that they are not over-insuring their cars. While Budget Insurance takes into account the car’s depreciated value, not all insurers do. Make sure your car is insured for the right value.
4. Update your home contents policy
Review your household inventory every six months and adjust the total insured sum accordingly. When you calculate the insured amount of your home contents, make sure you are using replacement values and not market values. Remove old and discarded items that no longer need to be insured from your inventory list.
5. Don’t duplicate cover
If your car or home insurance company offers free roadside assistance, you don’t need to pay for the same benefit from your medical aid provider.
6. Increase your security
You can reduce your car insurance premium if you have fitted your car with additional safety features, or you can pay less on your home insurance premium if you have invested in an alarm system for your home and if you have moved to a safer neighbourhood.
7. Don’t claim unnecessarily
Keep your insurance for real catastrophes which could result in unexpected losses, and avoid claiming for small incidents that you could cover from your own pocket.
8. Increase your excess
You could save some money on your monthly insurance premium by increasing the excess you pay when you claim. It’s best to find a balance where you’re paying a reasonable premium and you can cover your excess in the event of a claim.
9. Review your cover regularly
As your individual needs change so does your insurance needs. For instance, you may no longer need full comprehensive cover on an older or second car and may want to consider insuring it with Budget Lite.
10. Keep your details updated
By insuring your car for private use if you no longer use it for business or if your car is now parked in a more secure place overnight, such as inside a locked garage – will save you money. Do let your insurer know.
The consequences of going without insurance can be catastrophic. The good news is that with smart planning, insurance can be both comprehensive and affordable giving everyone peace of mind.
* Based on 2022 independent research when combining car and home insurance.