There are an estimated 12 million cars on South African roads and according to the Automobile Association (AA), between 65 and 70% of them are uninsured. This is an alarming statistic considering the number of accidents, hijackings and thefts that take place daily, placing these motorists at exceptional financial risk.
“Car theft and hijackings are now occurring at the same pace as they were pre-lockdown and home robberies are also starting to rise. Vehicle accident claims have also been steadily increasing - a clear indication that the roads have gotten significantly busier. The consequences of going without insurance can be far-reaching and financially devastating. Weigh them up against the cost of your monthly car insurance premium, and you’ll see just why an investment in good, affordable insurance deserves a spot in your budget,” says Tyrone Lowther, head of Budget Insurance.
Here are ten tips to reduce monthly insurance premium while still remaining insured:
When you calculate the insured amount of your home contents, make sure you are using replacement values and not market values. The replacement value is what it would cost you, at the time of a claim, to replace all your belongings with similar brand new ones.
Remove old and discarded items that no longer need to be insured from your inventory list. Why should you pay for coverage on a computer that stopped working in 2013? Similarly, the costs of some appliances and gadgets have come down in price so you really shouldn’t be paying to insure an item that was more expensive when it first hit the market than it is nowadays.
You could reduce your car insurance premium if you’ve fitted your car with additional safety features such as a tracking device or an alarm, for example. You could receive a reduction 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.