By: Wynand van Vuuren, client experience partner at King Price Insurance

Economic instability and rising living costs are weighing heavily on South Africans, this is according to the TransUnion Consumer Pulse Study for Q2 2024. The study revealed that 77% of consumers rank inflation on everyday items as their top financial worry, while interest rates (55%) and job security (52%) follow.

In light of these financial pressures, it’s a good idea to reassess your insurance and check that you’re getting the best value for money while still safeguarding your car, home, and belongings as we approach 2025.

Wynand van Vuuren, client experience partner at King Price Insurance, offers practical ways to ensure that your insurance is comprehensive yet affordable.

Identify your risks: Understanding where you’re most vulnerable to financial loss is the first step to adequate insurance coverage. Ask yourself how you would cope if your car was involved in an accident or if your home suffered fire damage. Could you afford the repair costs out of your own pocket?

“Some people opt for reduced cover on their cars to save money, but this potentially leaves them unprotected against accident damage, which is the most common type of claim we see,” says Van Vuuren.

Evaluate your current cover: Review your policy thoroughly. Are you still paying to cover items you no longer own? Is your jewellery locked away in a safe and never worn outside? Do you still have shortfall cover for cars that are already paid off? Has your vehicle aged a year, but you’re still paying last year’s premium? Do you work from home, making your house more secure because it’s always occupied?

By showing that you pose a lower risk, you could qualify for a reduced premium. You might also lower your premium by installing a tracking device in your car or upgrading your home security.

Value your home contents correctly: It’s important to ensure that your home contents are insured for their current replacement value, not what you originally paid for them. High-value items stored inside your home are covered under your home contents policy, but as soon as you take them off your property they must also be covered as portable possessions. This includes items like your phone, laptop, jewellery, sunglasses, watch, and gym bag.

Figure out what your buildings are worth: For insurance purposes, the value of your home isn’t the same as its market value or what you bought it for. You need to insure your house for what it would cost to rebuild right now, including all aspects such as foundations, perimeter walls and swimming pool, as well as solar panels, taps and tiles. If you’ve made any significant improvements to your home, it is wise to increase your value. If you don’t, you risk being underinsured.

Keep your information up to date: If your personal circumstances have changed in the last year, make sure you to let your insurer know. Changes to where your car is parked (day and night) or how many kilometres you drive each month can significantly impact your premium.

Bundle your policies: Insurance companies often offer discounts to clients who hold multiple policies with them. For instance, you may save money by insuring your buildings, home contents and car with the same provider. Some insurers also offer discounts for covering multiple cars.

“There are many simple ways to lower your premium without sacrificing your cover,” says Van Vuuren. “Every little bit you save can be used towards other essentials, or to start the new year with more in your pocket.”