These tips from Debbie Barrett, general manager of marketing at FNB Insurance Brokers (FNBIB), should get you thinking about ways in which you can get the most out of your insurance.
- Make sure your personal risk profile and lifestyle are taken into account. This can affect the extent and nature of the cover you take out. You can also adjust the sum insured — remember that the value of a car decreases, while property increases in value, so make sure you’re not paying the same for a five-year-old car as you paid for a brand-new, out-of-the-box vehicle.
- Fully comprehensive motor cover might not be necessary in all cases. Check to see where you can safely save money, but don’t skimp on essential cover.
- Get specialist advice from a qualified broker to ensure your cost savings; if not, you could be looking at an unacceptable level of risk exposure, which could lead to a reduced pay-out in the event of a claim. If you move to a new house and you’ve upgraded (new TVs, fridges and so on) and you haven’t included these items in your insurance, your household value may be R500 000, rather than R300 000.
- Don’t aim to save R100 a month yet leave yourself exposed to substantial loss because of false economy. Importantly, read the small print of your contract — you may think you’re doing well by saving R50 on a policy, but do you have a dedicated broker assisting you and providing additional value? Remember that an insurance take-on fee is non-refundable if you withdraw from a policy — and that alone might cost you more than R50.
- See where you can exploit discounts and special policy features — say, if you’re a senior, or you live in a property well protected by high levels of security. Check that your cover is exactly what you need — have you downscaled? Gone into a retirement village? Stay in touch with your broker or insurance company and revise your policy accordingly.
- Policy consolidation can lead to savings — see where you can bundle household content and motor vehicle insurance, for example. A standalone policy is more expensive.
- Be aware of what you insure for. Sometimes “cheap” is not the answer. The bottom line is, can you afford to pay the excess at the time of loss? If not, rethink or revise your policy.
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