Durban - With inflation soaring and food and petrol prices going through the roof, the stress of paying monthly insurance premiums puts added pressure on consumers.
FNB estimates it takes the average mid-income consumer just five days to spend 80% of their salary each month, and it’s not getting any easier.
While 60% of respondents in a Debt Rescue survey said that they don’t have any money left at the end of the month.
Now is the time for South Africans to cut costs, reduce their spending and lower their debt burden.
Generally, insurance premiums are one of the things that people cut back on, but that is the worst thing that you could do.
Wynand van Vuuren, client experience partner at King Price, said that insurance is a critical tool that helps protect our homes, cars, and possessions.
“Insurance is one of the few things we buy that we hope never to need. And all those premiums can really weigh on the budget. But if your finances are under pressure right now, talk to your insurer to see what you can afford. Now is time you need insurance more than ever,” Van Vuuren said.
Here is how you can save on insurance:
Speak with your insurance provider
Tell your insurer what you can afford as a monthly premium, and they will work with you to find a solution that will give you as much cover as possible for your most important risks.
Bundle your policies
Most insurers will give you a discount if you bundle your policy. You can do this by putting more than one car on the same policy or taking other insurance policies like buildings insurance and your home contents cover with the same insurance provider.
Review your current insurance
Most people will take out an insurance policy, look at the policy and then forget about it. Instead, ensure that your vehicles, buildings and home contents are covered for their current replacement value, not their market value. Not being properly insured can prove to be an expensive mistake.
For example, if you insure home contents worth R1 million for R500,000, you would only be paid 50% of any claim.
Review your excess
Your excess is the first amount payable on any claim. Usually, the higher the excess is on the policy, the lower the monthly insurance premium will be. However, you need to choose your options carefully because the excess will still need to be paid should you make a claim.
Reduce your risks
All insurers base the premium that you pay each month on your risk. If you are working from home therefore driving less, let your insurance provider know, and you may see a difference in your premium.
You can also lower your risk by making small changes like parking in a garage rather than on the pavement.
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