Belt-tightening tips for insurance that don’t leave you at risk
It’s important to distinguish between different kinds of expenses and find ways to get the most out of recurring expenses. Install a tracking device to reduce premiums. Review car’s value every year to ensure the insured amount reflects reasonable market value. Lower-powered, lower-value and low-theft risk vehicles influence vehicle premiums. Ensure the gender, marital status and licence information of the regular driver is correct. If you can’t afford comprehensive insurance, it’s advisable to have third party insurance. Consider taking off car hire if you have it on your policy. Consider taking items off the policy if you keep them at home. Consider adding supplementary security measures. An alarm system, for example, can reduce insurance premiums.
Where you live is important. Moving to a security complex can influence the premium charged as it has an impact on a person’s risk profile.
The insured amount of house contents should represent the new replacement value. If inflated, it can increase the premium.
Limiting insurance cover to certain events can reduce premiums, but it can also result in not being covered for loss or damages.
A factor determining the premium charged for your building is the total value insured amount; the correct value will be represented by the current replacement cost.
Ensure the address and construction of the roof and walls are correctly noted on the policy, as it’s used as rating factors.
Implement fire detection and/or sprinkler systems updates and upgrades (including booster pumps and water tanks) to ensure cover in the event of fire.
Ensure electrical connections/plumbing are approved by registered professionals.
Ensure fire-fighting equipment is regularly assessed and tested.
Critically, it’s important the budget allocation for municipal infrastructure is maintained at appropriate levels, as it has a direct correlation with household and business finances. Andrew Coutts is Santam head of intermediated distribution