In South Africa, You Can’t Afford Not to be Insured

If you live in South Africa, you’ve probably wondered if there are ways to reduce your insurance premiums – without losing any of the benefits. It’s easy to understand why. Good insurance isn’t always cheap, and cheap insurance isn’t always good. But in a country where vehicle and household insurance should be a priority, it makes sense to consider the most intelligent ways to reduce costs while ensuring optimum cover.

How Many People Aren’t Insured? Here Are The Facts

If you live in South Africa, there are a multitude of reasons why you should be well insured:

• The incidence of road accidents is statistically very high.
• Motor vehicle theft, home and business burglaries, and petty crime are a fact of life.
• Inadequately maintained infrastructure increases risk – to properties, and on the roads.
• Incidental events like power surges can cause fires or damage to expensive household appliances.

The statistics are startling: according to the Automobile Association, only 3 out of every 10 cars on the road are currently insured. It’s also estimated that most households may be underinsured by up to 60%. There are many reasons for this. These can include financial constraints, poorly informed decision making, or simply neglecting to update insurance requirements, among others.

Smart Ways to Reduce Your Insurance Costs Right Now

Despite the necessity of having comprehensive motor vehicle and household insurance, there are still several proven ways to bring down the overall cost of your insurance premiums.

1. Consolidate Your Policies

If you’re currently insured through several different companies, you may be missing out. By combining your policies or – for example – placing your car and household insurance with one dedicated insurance provider, you may qualify for a discount on your insurance premiums. To find out more about this option, simply chat to our short term insurance team.

2. Examine Your Options

Take time to carefully consider your choices when it comes to choosing an insurance provider. Beware of pressure tactics or the lure of convenience. For example, when you finance a purchase, a bank may persuade you to settle for the insurance provider of their choice simply because it’s offered as a ‘one-stop purchase’. Comparing costs and benefits takes more time – but could save you a lot of money later on.

3. Ensure Your Home Contents Policy is Updated Regularly

When it comes to household contents insurance, it pays to keep your insurance provider informed of upgrades or changes. You may be in a situation where your standard of living has significantly improved, and you don’t want to risk being under-insured in the event of a loss. The opposite is no less true: it makes sense to periodically check your cover to ensure that you’re not paying to insure items that you’ve discarded or that have significantly depreciated in value. Here are some important points to keep in mind:

• Remove items from your inventory that have been discarded or are no longer used or functioning.
• Take note of items where the purchase price tends to decrease in relative cost as time goes by. This particularly applies to technology-rich items, where a new version may actually cost less than the same item when it was launched years ago. This is why TVs are becoming cheaper, as well as newer technologies like solar panels.
• Also take care to insure items for their current replacement value – not the retail value at the time of purchase.

4. Increase Your Security Measures

Your risk profile influences the premiums you pay. Simple additions, like an expanded home security system or a tracking device on a vehicle, could lead to a reduction in your insurance premiums.

5. Take a Look at Your Excess

Excess payments on a claim are often a trade-off. The lower the excess, the higher the premium. If it’s practical and affordable to increase your excess, then doing so could actually save you money month-on-month.

6. Avoid Duplicating Your Coverage

If your medical aid provider or bank offers you free roadside assistance, it doesn’t make sense to actually pay for the same service somewhere else. Go through your cover and identify instances where you might have inadvertently duplicated cover.

7. Insure Your Vehicle at the Right Value

This applies particularly if you drive an older vehicle. Not all insurers factor depreciation into their premiums, and you might be paying a lot more than you should on your car insurance premiums.

8. Regularly Update Your Details

Even seemingly insignificant changes can lead to reduced insurance premiums. For example, if your car was insured for business use but is now only used privately, an update on your policy could bring you a reduction in cost

9. Avoid Unnecessary Claims

It’s tempting to claim for that unsightly scratch on your car or that plumbing job – but it almost always leads to an increase in your insurance premiums. If you can afford to have it repaired, or put it off, then rather do so.

10. Periodically Review Your Cover

As your lifestyle changes, your insurance requirements may also change. For example, you might not see the value of keeping a fully comprehensive policy on that old vehicle of yours. Perhaps it’s time to opt for more economical third-party cover. However, we recommend that you always consult with a knowledgeable insurance advisor before making any major decisions. .

More Than Expert Short-Term Insurance Advice

In addition to short-term insurance expertise, the Pogir Group also specialises in medical aid schemes and healthcare solutions, life financial planning, employee benefits, and wealth management. Our approach is personable and individualised, and we recognise that every client has unique needs and requirements. If you’d like more information, or to discuss your short-term insurance requirements, simply contact us. Pogir. Smart, with heart. _________________________________ LINK INDEX 3 out of every 10 cars on the road are currently insured https://www.news24.com/wheels/News/Guides_and_Lists/having-minimum-cover-is-better-than-not-being-insured-at-all-aa-20180214 short term insurance why TVs are becoming cheaper https://www.goingbeyondwealth.com/why-tvs-are-becoming-cheaper/ contact us https://www.pogir.co.za/contact-us/