For most South Africans, the past several months have been a real challenge, forcing individuals and businesses to look for ways to save money during a tough economic period.
One way to tighten your belt is to review your budget to see where costs can be cut. But when it comes to insurance, it’s important to remember that working from home and adjusting to this "new normal" doesn't mean risks just disappear. We simply need to adapt in order to stay safe and look after our pockets.
We’ve put together some tips to help you save responsibly without compromising on your cover.
Tip 1: Check you’re not over- or underinsured
We spring-clean our homes and commit to new resolutions every year, but we often tend to forget about that all-important insurance contract because it’s not something tangible that we can see. A short-term insurance contract is renewed automatically so it’s seldom a top-of-mind priority. Instead of just letting it tick over, take the time to read your insurance contract.
It’s best to involve your broker in reviewing your insurance contract – he or she is best positioned to offer you expert advice to ensure you are properly covered.
If you've done renovations to enhance the value of your home, such as extending it, installing a swimming pool or upgrading your kitchen, reviewing your policy is an opportunity to make sure you're not underinsured. When it comes to your car, you'll want to check that the market value it’s insured for is correct, taking into consideration things like age, mileage and the condition it's in.
Tip 2: Install safety measures to save on home insurance
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 3: Remove old, sold or unused items that no longer need cover
The old fax machine? The washing machine gathering dust? The cellphone you’re keeping for “just in case”? Along with adjusting the value of your belongings, getting rid of old or unused items that longer need cover is another way you can lower your home insurance premium. Don’t play guessing games when determining the total value at risk. The truth is, the best way to do this is item by item, room by room. Does this sound tedious? Don’t worry, our Home Contents Calculator will make this process a whole lot simpler.
Tip 4: Take car hire off your insurance policy
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 5: Can’t afford comprehensive cover? Opt for 3rd-party insurance 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 without having to compromise on insurance good and proper.
Tip 6: Car spending more time at home? You could save up to 20% 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.
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.