Seven tips to help you save responsibly on your insurance premium

Seven tips to help you save responsibly on your insurance premium

The recent 2022 Budget Speech presented by the Minister of Finance has left South Africans anticipating to what extent it will impact their pockets. Higher interest rates are on the cards and inflationary pressures will decrease disposable income for South Africans. The recent fuel price increase has no doubt exacerbated the impact on consumers.

Managing one’s finances and finding ways to cut unnecessary expenditure has never been more important. When disposable income decreases, short-term insurance becomes one of the first things to get cut off the budget which, unfortunately, leaves people vulnerable should an unfortunate incident happen.

We have compiled a few tips we think will help you save responsibly on your insurance premiums.

Tip 1: Removing car hire from your policy could help you save on your car

insurance premium. You would then have to arrange your own transport should your car be in for repairs.

Have you got more than one set of wheels in the family? Are you able to catch a cab or catch a lift with a friend? If the answer is “yes”, rather remove car hire from your policy. That way, you’ll save by reducing your monthly car insurance premium.     

Tip 2: If you can’t afford comprehensive car insurance and your car is not subject to a hire purchase agreement, consider third-party insurance cover instead.

Replacing your own car can be pricey but having to replace someone else’s luxury car after an accident can be expensive in the long run. If you can’t afford comprehensive insurance for your car, go with 3rd-party insurance instead. You'll pay less and remain covered if the need to claim arises.

We understand these are challenging times, that’s why Santam is committed to supporting you in saving responsibly on your insurance premiums.

Tip 3: Install safety measures to save on home insurance. Enhancing safety measures at your home with a linked alarm could lower your insurance premium.

Not everyone can live in a security complex (though it is a big plus), but there are other ways you can save on home insurance premiums. Consider other safety measures you can put in place to protect your property and serve as a deterrent. These include burglar bars, security gates, electric fences or a linked alarm system.

Tip 4: Not driving much? You could save up to 20% on your car insurance premium with SmartPark™.

If you’re driving less than 15000km a year, you could save up to 20% on your car insurance premium with SmartPark™. Because if your car’s spending more time at home, you should be spending less on your premium. With SmartPark, your insurance premium will be recalculated and discounted based on the revised number of kilometres you are likely to travel in the foreseeable future – all without having to restructure your policy or compromising your cover.

Tip 5: Combining your vehicle and home contents cover could help you cave on your monthly premium.

While there are many smaller insurance providers that only offer niche products, such as only vehicle, insuring with a larger company that can meet all your insurance needs is a good idea. For one, it helps simplify the insurance process but also by insuring your car and home contents with the same insurance provider, you could qualify for a discount. Speak to your advisor or intermediary about bundling your policies to get a good deal.

Tip 6: Taking all-risk cover for specified valuable items is unnecessary if those items are never removed from your home. 

If your lifestyle has changed, you are no socialising out as much as you used to and no longer wear that expensive jewellery outside of the house anymore. Perhaps you are not travelling as much and not using your photography equipment, or are even working from home now and your laptop is always in the house. If this the case, consider removing specified all risk items from your policy as they are already covered under your home contents policy. This could save you some money on your insurance premium.

Tip 7: Consider voluntary excess on comprehensive vehicle insurance. Generally, you could pay a lower monthly premium if you increase your excess payment. You would then need to be able to afford the higher excess amount in the event of a loss.

The greater your excess is, the lower your premium. Your insurance excess is the amount of money you are required to pay when you claim from your insurer. Most often, this includes a compulsory and voluntary amount. If you have extra cash at hand, you can increase your voluntary excess. This would mean paying more out of your pocket, so make sure you can afford the higher excess amount. By doing this, you are essentially shifting more risk from the insurer to yourself but will receive a lower monthly premium as your insurer will be saved from paying out minor claims.

Looking for more ways to save on your premium without compromising on your cover? Call Santam on 0860 444 444 or speak to your intermediary.

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