With inflation soaring, rises in interest rates, and increases in the cost of living and food, people struggle to save money.
Generally, insurance premiums are one of the things that people cut back on if they want to save money. However, that is the unwise thing they could do.
Wynand van Vuuren, client experience partner at King Price, said that insurance is a critical tool that protects our homes, cars, and possessions.
“Insurance coverage should never be compromised – even in extremely tough economic times like the one we’re in now,” Neptal Khoza, Head of Market Development at SA’s largest insurer, Santam said.
Here is how to save money on insurance premiums:
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 discount your policy if you bundle it. You can do this by putting more than one car on the same policy or taking other insurance policies like building insurance and your home contents cover with the same insurance provider.
Review your current insurance
Most people take out an insurance policy, look at it, and forget about it. Instead, ensure that your vehicles, buildings, and home contents are covered for their current replacement value, not market value. Not being properly insured can prove to be an expensive mistake.
For example, if you insured 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 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 if you make a claim.
Reduce your risks
All insurers base the premium you pay each month on your risk. If you are working from home and 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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