Last year, over a period of three-months, over 9 500 cars and motorbikes were reported stolen across South Africa. That’s around 104 cars stolen a day.
Over the same three-month period, 6 009 cars were hijacked; one every 21 minutes.
If you math the maths, insurance is a non-negotiable.
This month, on 28 June, its Insurance Awareness Day, the ideal time to remind South Africans about the importance of having insurance cover in place.
IOL recently spoke to car insurance experts at Budget Insurance to find out how South Africans can stay insured, and benefit from lower monthly premiums.
Here are 8 ways to save:
1. Look out for opportunities to save: Shop around for an insurer that can offer you the best levels of cover at the most competitive price. For example, this month, to celebrate Insurance Awareness Day, Budget Insurance is offering new customers an extra 10% off their already affordable premiums plus tyre and rim cover for R10 per month for 12 months!
2. Insure your vehicle for the correct value: Drivers of older vehicles must ensure that they are not over-insuring their cars. While Budget Insurance takes into account the vehicles depreciated value, not all insurers do, so make sure your vehicle is insured for the correct value.
3. Increase your security: Your car insurance premium is calculated based on your risk profile. Your risk profile is based on a number of things such as where you live, the type of car you drive, and the security measures you have in place, amongst others. 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.
4. Don’t claim unnecessarily: Keep your insurance for real catastrophes which result in unexpected large losses and avoid claiming for small events that you could cover from your own pocket. When you claim for every little scratch, your insurance provider will raise your premium to reflect the higher risk you pose. Also, claiming could affect your Cash Back Bonus if you have one.
5. Increase your excess: You could save some money on your monthly insurance premium by increasing the excess you pay when you claim. Ideally, you want to pay the lowest excess you can in the event of a claim. However, opting for the lowest excess might make your premium too expensive for you. Best practice is to find a balance where you’re paying a reasonable premium and your excess is not too high that you won’t be able to cover that amount should you need to make a claim.
6. Combine your policies: By insuring your car and home contents, or your car and buildings insurance with the same insurance provider, you’ll qualify for a discount.
7. Review your cover on a regular basis: As your individual needs change so may your insurance needs. For instance, you may no longer need full comprehensive insurance on an older or second vehicle, and may want to consider insuring it for Lite cover.
8. Make sure you keep your details updated: Insuring your vehicle for private use if you no longer use it for business, or if your vehicle is now parked in a more secure environment overnight, like inside a locked garage, it will save you money so let your insurer know.
The consequences of going without insurance can be catastrophic and not many people have the cash in-hand to replace their car if it’s stolen or written-off in an accident.
The good news is that with smart planning, insurance can be affordable – giving everyone peace of mind.
IOL