Insurance is one of the best risk management strategies to protect your assets. There are so many benefits attached to having adequate insurance cover for your car and home.
Though it is essential to protect your possessions from risk factors through insurance, it is also important to ensure that you are not paying more than what you must for the policies.
Premiums mostly depend on your level of risk and there is a lot you can do to reduce your car and home insurance premium, thereby saving money.
For the sake of clarity, we will consider the tips for the two types of insurance separately.
Saving on Car Insurance
Your car insurance premium will depend on your needs. Here are some steps you can take to reduce your car insurance premium:
1. Take Advantage of Low Mileage
There is an average number of kilometers per year that insurance companies work with. Most companies also have a discount for those who drive fewer kilometers than the average person.
Ask insurance companies if they have such discounts and how much you can save through it.
2. Driving a Lower Value Vehicle
The rate of premium also depends on the value of your car.
Buy a vehicle that is good, but not one that will cost you significantly more money on insurance alone.
3. Drive a Lower Risk Car
Insurance is all about risks and the higher your risk, the higher your premium will be.
You must maintain your car well to reduce associated risks. Strive to reduce the risk factors considered by insurance companies by upgrading the security of your car.
You can install security devices like trackers with advanced functionalities for example. Your theft excess may even be waived with some Insurers.
4. Group Insurance Where Possible
There are some companies that have special offers for group insurance. These groups can be professional associations, business groups, alumni, employees under one company, or other such groups.
You can consult with your insurance broker if you would benefit from such offerings.
5. Other Discounts
There might be some other forms of discounts in place, like some insurance companies offer discounts to people who have never been involved in an accident. Consult with your insurance broker to see if you are eligible for such benefits.
Saving on Home Insurance
There are two types of home insurance: Building Insurance and Home Contents Insurance.
Here are some tips that can be very useful in saving costs on home insurance:
1. Don’t Over Insure
Home insurance can be very complicated for people who do not understand it. Your insurance cover should cover your loss only, so anything that cannot be damaged should not be included in the final value of your home.
The value of the land, for instance, is a superfluous item that should not add up to the value of your home in terms of insurance. Talk to a reputable insurance broker in South Africa to get better guidance when it comes to insuring your home.
2. Increase Safety Measures
If your house is more secure, your premium will be lower. If your risk factors are minimal, you will enjoy a lower premium.
There are safety devices that will not only reduce your premium and save you some money but will also keep you and your family safer.
A few security considerations may be:
- Electric Fencing
- CCTV Cameras
- Alarm System
- Security Beams
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3. Ask for Discounts
Never assume that insurance companies provide you with all the information that can benefit you, go ahead and enquire about any discounts and offers to see if you qualify for them.
Talking to an insurance broker can be a great help when exploring these benefits and deciding which insurance policy to sign up for.
4. Pay Annually
Your home is an asset that is more likely to be in your possession for a longer period. In most cases, premium payments involve financing and administration fees.
If you can afford it, it is advisable that you pay your premiums annually and not monthly to avoid unnecessary administration fees.
General Tips for Saving on Insurance
There are some tips that are not particularly specific to either car or home insurance, but it will help you to collectively save on the two.
Here are some really important ones:
1. Compare Rates
Before you sign up to an insurance company, it is a good practice to compare quotes to have a better idea of the trend and what represents a fair offering.
This will help you to make the right decision that will enable you to save on insurance.
2. Combined Insurance Deal
Most companies offer incentives and discounts for customers who sign up to more than one of their insurance policies.
If you are comfortable with a particular insurance company, you can sign up for a combined insurance policy. This will cover both your vehicle and property.
3. Increase Your Excess
Your excess has a lot of influence on what you pay for the insurance premium. By consciously raising it, your premium will reduce and you can save more on car and home insurance.
The downside to this is that you will be required to pay more if an unfortunate event occurs.
Bundling your car and home insurance with a single insurance company is one of the easiest ways to save on insurance. This is often even better if you have several cars and properties, as you will enjoy many discounts and benefits.
Speak with an experienced insurance broker to assess your insurance needs and help you to save on car and home insurance.