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These tips will help you get good insurance that won't break the bank

Budget Insurance says when you shop around wisely, you can reduce your premium — affording you peace of mind during tough economic times

With smart planning, insurance can be both comprehensive enough and affordable.
With smart planning, insurance can be both comprehensive enough and affordable.
Image: Supplied/Budget Insurance

Despite the cost-of-living crisis in SA, insurance should be non-negotiable. It is a financial lifeline and a “get-back-on-your-feet” solution for when things go wrong. 

From January to March this year, according to the SA Police Service, there were 40,960 home burglaries, hijackings were up 19.7%, and 9,377 cases of car and motorbike theft were reported. Then the floods came in provinces, including KwaZulu-Natal and the Eastern Cape, destroying homes and washing away cars.  

Peace of mind can be affordable

Many South Africans believe the cost of living and record high fuel prices make insurance unaffordable. This faulty assumption is why 70% of registered cars on the road are uninsured and why some South Africans are underinsured by as much as 60% for their home and home contents. 

Budget Insurance says insurance doesn’t have to cost a fortune. By following 10 practical tips to reduce your premium, you’re guaranteed peace of mind. 

How to keep your premiums from busting your budget  

  1. Look out for opportunities to save. By insuring your car and home contents, or your car and buildings insurance with the same insurance provider, you could qualify for a discount. You can save 20% when buying car insurance on Budget’s website
  2. Shop around and choose your insurer wisely. Budget Insurance offers some of SA’s lowest home contents insurance quotes and saves their customers up to R420 a month* when they combine their home and car insurance.
  3. Insure your car for the right value. Drivers of older cars should ensure they are not over-insuring their cars. While Budget Insurance takes into account the car’s depreciated value, not all insurers do, so make sure your car is insured for the right value. 
  4. Update your home contents policy. Review your household inventory every six 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 list. 
  5. Don’t duplicate your cover. If your car or home insurance company offers free roadside assistance, you don’t need to pay for the same benefit from your medical aid provider. 
  6. 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.
  7. Don’t claim unnecessarily. Keep your insurance for real catastrophes which result in unexpected large losses and avoid claiming for small incidents that you could cover from your own pocket. 
  8. Increase your excess. You could save 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.
  9. Review your cover regularly. As your individual needs change so may your insurance needs. You may no longer need full comprehensive cover on an older or second car and may want to consider insuring it with Budget Lite
  10. Keep your details updated. Insuring your car for private use if you no longer use it for business, or if your car is now parked in a more secure place overnight like inside a locked garage, will save you money. So let your insurer know.    

The consequences of going without insurance can be catastrophic. The good news is that with smart planning, insurance can be both comprehensive enough and affordable — giving everyone peace of mind.

This article was paid for by Budget Insurance.