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Financial Planning
July 1, 2019

Mark Savings Month by saving on your insurance premiums

<strong>By: Absa</strong> <strong>idirect </strong>

<p class="m_7471733374084589121m_-1652525696784216069MsoNormalCxSpMiddle">No matter what your feelings about insurance are, your premiums are a necessary part of life to protect against loss, theft or damage. In a tough economic climate, consumers may be battling to afford premiums for their house, car or personal belongings, so with July being Savings Month, Absa idirect has some tips to help you save.<u></u><u></u></p>

<p class="m_7471733374084589121m_-1652525696784216069MsoNormalCxSpMiddle">Vigen Naidu, General Manager of <span lang="EN-GB">Absa idirect, says</span> the key to saving on your insurance is to make some small changes that will add up to large savings.<u></u><u></u></p>

<p class="m_7471733374084589121m_-1652525696784216069MsoNormalCxSpMiddle">“Do adequate research and understand what offerings are in the market. Research and make certain that you understand what your product will and will not do,” Naidu said. Only insure items that require cover, and minimise premiums. <u></u><u></u></p>

<p class="m_7471733374084589121m_-1652525696784216069MsoNormalCxSpMiddle">Practice good driving habits as this saves on risky behaviour as well as on vehicle maintenance. “Adoption of technology with the use of Telematics devices, has the ability to reward good driving practices.”<u></u><u></u></p>

<p class="m_7471733374084589121m_-1652525696784216069MsoNormalCxSpMiddle">Having a good ITC score, and a healthy credit rating, can translate to better premiums. “Have bundled/packaged policies to attract better rates and discounts.” You can also enquire about family bundling into a Group policy, incorporating your household contents, buildings, valuables and motor insurance into a single policy.”<u></u><u></u></p>

<p class="m_7471733374084589121m_-1652525696784216069MsoNormalCxSpMiddle">Naidu says consumers should understand the differences between direct and broker-led channels. “Direct channels attract lower premiums due to limited advice being provided, as well as attracts a lower cost to serve customers.”<u></u><u></u></p>

<p class="m_7471733374084589121m_-1652525696784216069MsoNormalCxSpMiddle">Have an up to date home inventory as this will ensure you are not over, or under-insured.<u></u><u></u></p>

<p class="m_7471733374084589121m_-1652525696784216069MsoNormalCxSpMiddle">“Understand deductibles, which are excess payments one incurs upon claiming, if one opts for a higher excess payment, monthly premium values can be reduced to improve affordability for the customer thereby increasing deductibles reduces premiums. “Compare the cost of insurance prior to purchasing a car. Make sure you get the full picture about how much your new car will cost you monthly, it is not just about the vehicle instalment cost.”<u></u><u></u></p>

<p class="m_7471733374084589121m_-1652525696784216069MsoNormalCxSpMiddle">Reduce optional insurance on older cars which may not need comprehensive insurance, as the value of premiums will outweigh the cost of old vehicle.<u></u><u></u></p>

<p class="m_7471733374084589121m_-1652525696784216069MsoNormalCxSpMiddle">“Take advantage of low mileage discounts in the form of ‘pay as you drive’ cover.”<u></u><u></u></p>

<p class="m_7471733374084589121m_-1652525696784216069MsoNormalCxSpMiddle">Limiting your exposure on the roads with multiple cars by making us of public transport and car pools can reduce your premiums if you have pay as you drive cover.”<u></u><u></u></p>

<p class="m_7471733374084589121m_-1652525696784216069MsoNormalCxSpMiddle">Aim to live in secure security complexes or estates if possible as this will translate into a more affordable premium. “Storing items in a bank vault may be cheaper than the insurance premium for household good of high value, such as watches.”<u></u><u></u></p>

<p class="m_7471733374084589121m_-1652525696784216069MsoNormalCxSpMiddle">Finally, Naidu recommends that, “Customers should keep an eye out on the rapid digitisation of the insure tech landscape, which will not only serve to lower premiums, but also enhance safety and lifestyle benefits.”</p>

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