by Nicole Canning

1. Check for discounts

Senior citizens, single parents and long-term customers are all statuses that can potentially qualify for lower premiums. When purchasing car insurance, things like not having had an accident or traffic fine in a certain number of years can bring down your payments, as can low annual mileage, air bags, anti-lock brakes, or having done a defensive driving course.

2.Install protective measures

Hendri Nigrini, Santam’s Executive Head of Risk Services states that it’s important to speak to your broker if your take any protective measures in and around your home. Details like having locks on windows, lighting, smoke detectors or fire alarms can all contribute to saving you money on your premiums.

3.Consolidate

Did you know that you could save as much as 30% on your insurance by consolidating your home and motor policies? Insuring with separate companies means repeated admin fees and unnecessary additional costs.

4.Assess your needs

There is such a thing as being over-covered. For example, cars are insured at market value, whereas house contents are insured for their replacement value. So if your vehicle is old and not worth much then it is best to opt for fire, accident and third-party cover only.

5.Re-assess yearly

In line with the point above, your car will depreciate over time so you can adjust the insured value of your vehicle every year and reduce premiums.
Nigrini advises to update your policy at least once a year to make sure all household contents and car accessories are fully insured.

6.Get professional advice

Before you make any changes to your policy, speak to your broker to understand how it will impact on future claims. Never provide false information – if you say that you have a gear lock when you don’t, not only will you not be paid out; rendering all your monthly payments pointless, but you can be held liable for fraud.

7.Ask employer about benefits

Even if your employer does not offer insurance as part of your salary package, you may qualify for a group rate if most of the employees are insured through the same company.

8.Know your stuff; shop around

Comparison shopping becomes powerful when you’re armed with knowledge. Challenge yourself to know the ins-and-outs, rather than allowing your brain to shut down when faced with a wad of insurance bumph. Often it’s not as complicated as we think it is, and it’s not as complicated as our insurers think we think it is – which places us on an equal footing when negotiating.

9.Raise your excess

You can voluntarily opt to pay a larger excess when you claim, which can help keep your premiums down. You should only consider this if you are able to afford paying the higher excess.

10. Don’t submit unnecessary claims

Premiums are directly proportional to claims. When you claim, your no-claim bonus generally falls away and your premium goes up. If you can afford it, rather cover relatively small losses out of your own pocket and avoid premium increases.