10 Tips to Decrease Insurance Costs

What price can one put on having peace of mind? In this day and age, more so than ever, insurance is non-negotiable – it’s a financial lifeline and a get-back-on-your-feet solution for when things go wrong. With Budget Insurance, peace of mind doesn’t have to cost a fortune and, by following just 10 practical tips, you can reduce your premium appreciably.

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Sometimes, things go wrong

This year, from January to March, there were 40 960 home burglaries, hijackings went up by 19.7% and 9 377 cases of car and motorbike theft were reported – that’s according to the SAPS. Then the floods came, which destroyed homes and washed vehicles away. We are not talking about minor bumps or dents here – countless assets were written off; it was a devastating loss in which South Africans lost hundreds of thousands of Rand… and some even more than that.

Needless to say, many individuals and their families were ruined financially because they weren’t insured against damage or loss. Cash-strapped South Africans will point out that the cost of living crisis, including record high fuel prices, makes insurance unaffordable. This incorrect notion is why 70% of (or 2 out of every 3) registered cars on our roads are uninsured and why, when it comes to homes and their contents, some South Africans are underinsured by as much as 60%.

However, the country’s recent spate of misfortune demonstrates that insurance is a must-have and with Budget Insurance, peace of mind doesn’t have to cost a fortune. Here’s how you can reduce your premiums appreciably.

10 premium-busting tips for savvy South Africans

1. Shop around and choose your insurer wisely

Budget Insurance, for one, offers some of South Africa’s lowest home contents insurance quotes and saves their customers up to R420 when they combine their home and car insurance. One can also save 20% when buying car insurance via Budget’s website.

2. Insure your vehicle for the correct value

Drivers of older vehicles must ensure that they are not over-insuring their cars. While Budget Insurance takes into account the vehicles’ depreciated value, not all insurers do, so make sure your vehicle is insured for the correct value.

3. Update your home contents policy

Review your household inventory every 6 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.

4. Don’t duplicate coverage

If your car or home insurance company offers free roadside assistance, you needn’t opt for the same benefit from your medical aid provider.

5. Increase your security

You could reduce your car insurance premium if you’ve fitted your car with additional safety features, or pay less on your home insurance premium if you’ve invested in an alarm system for your home or if you’ve moved to a safer neighbourhood.

6. Don’t claim unnecessarily

Keep your insurance for real catastrophes, which result in unexpected large losses and avoid claiming for small events that you could cover from your own pocket.

7. 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.

8. Combine your policies

By insuring your car and home contents, or your car and buildings insurance with the same insurance provider, you could qualify for a discount.

9. Review your cover on a regular basis

As your individual needs change, so may your insurance needs. For instance, you may no longer need full comprehensive cover on an older or second vehicle and may want to consider insuring it with Budget Lite.

10. Make sure you keep your details updated

Insuring your vehicle for private use if you no longer use it for business, or if your vehicle is now parked in a more secure environment overnight, like inside a locked garage, it will save you money so let your insurer know.

Where to find the best car insurance in South Africa?

The consequences of going without insurance can be catastrophic. With smart planning, insurance can be both comprehensive enough and affordable – placing complete peace of mind within anyone’s reach.

Our friendly consultants are ready to get you set up with Budget Insurance. Give them a call on 0861 00 13 53 or leave your details and they’ll call you back at no expense to you! You can also request an online quote.