Like anyone, you'll want to make sure that you get the best insurance cover
at the lowest premium possible, without compromising on your insurance cover.
There are ways to save money - which we describe below.
Reduce your insurance risk
All insurance works on risk. The insurer charges you a premium in return for
providing a certain value of cover - and this premium is linked to the risk that
you pose of having to actually claim on your insurance. So one of the ways to
reduce the cost of your insurance is to reduce your risk profile.
There are many ways of doing this - although most require that you spend
money, this should be offset by the premium savings. Here are some tips:
- Install extra security measures.
This reduces the risk that you will be burgled. In fact in South Africa it
is virtually impossible to get insurance in the first place without some
form of security. What you can do is to increase these security measures. So
if you already have an alarm system, have it linked to a 24-hour armed
response service, or join a neighbourhood watch scheme or install laser
alarms on your property.
- Reduce the risk of fire damage by installing smoke alarms.
- Increase your excess
This is a trade-off - insurance companies will reduce your premiums if you
are prepared to pay a higher excess when you claim. This is of course
something that you need to carefully consider, as you don't want to strand
yourself with an unaffordable excess if you need to claim. One way to handle
this is to put the money you save on your premium into a savings account so
that it can accumulate towards the excess payment - and earn you interest.
- No claims discount
It is sometime better to not claim on small losses in order to preserve your
no-claims record, which usually means reduced premiums. For more
money-saving ideas read the moneysupermarket.com top tips section.
Research thoroughly
Normal consumer wisdom counts just as much for insurance as for anything else
- do your homework and shop around. Not all insurance packages are the same, and
there are always the niche insurers who will give you discounts for various
things. If you are a registered professional or have a post-graduate degree, for
example, you can qualify for specialist insurance that comes without an excess,
and without increased premiums.
We can help you here - our reviews section covers all the major and niched
insurers in South Africa, describing their packages in detail and giving you
contact details so that you can speak to them to find out exactly what can be
tailored to suit your specific needs.
Remember that you always have choices and options - and don't just accept the
cheapest quote. It may save you in premiums, but it can also be a source of
anguish when you realise that you aren't properly covered, or that you're
under-insured. It may be worth your while to pay a little more each month, in
return for higher value for money and more peace of mind.
Above all, don't be afraid to exhaustively interview your prospective insurer
to find out exactly what their policy offers, what the exclusions are, and how
you can save by taking different options.
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