How South Africans can get more value from their insurance

Johannesburg - TransUnion's latest quarterly Consumer Pulse Study reveals that 51% of South Africans reported cutting back on discretionary spending in 2026, while 31% cancelled subscriptions or memberships.

Insurance, however, should not fall into either of these categories.

This is according to Marius Kemp, Head of Personal Lines Underwriting at Santam, who urges policyholders to optimise their cover, rather than reducing essential protection in an attempt to lower their premiums.

“The one thing you should never cut back on is quality insurance,” Kemp says. “Cheaper insurance options could save you some cash in the short-term but may end up costing more in the long run if you aren’t properly covered.”

Instead of reducing cover, Kemp offers the following tips to maximise the value of insurance without compromising on protection:

Take a holistic view of your insurance needs

Arguably the easiest way to get the most value from your insurance is to combine your car, home and buildings insurance with one insurer.

“Many consumers focus on individual policies without considering how their insurance needs fit together,” says Kemp. “Managing your insurance needs through a single provider can make it easier to keep track of your cover, ensure there are no gaps in protection and simplify the claims process when you need support.”

Reduce your risk to lower your premiums

Taking practical steps to reduce risk can help protect your assets and improve your overall insurance profile.

For homeowners, Kemp says this might include installing burglar bars, alarm systems or other approved security features, while vehicle owners may benefit from security enhancements such as tracking or telematics devices.

“Be sure to notify your insurer when adding any additional security measures to your home or vehicle,” says Kemp. “Over and above giving you additional peace of mind, proactive risk management may actually result in discounted premiums.”

Make sure your insured values are accurate

Many policyholders only think about their insurance when they need to claim but regularly reviewing your insured amount is an important part of maintaining appropriate cover.

“The insured amount of your house contents should represent the current replacement value. If inflated, it may mean a higher premium without any benefit at claims stage. Rather do it accurately: item by item, room by room, instead of guessing an amount,” Kemp says.

“The same concept applies when it comes to building insurance,” Kemp adds. “Be sure to establish the current building replacement cost of all the structures on the premises to see if you might be over-insured and paying higher premiums than necessary.”

Review policy details regularly

Seemingly small details can have a significant impact on whether your cover accurately reflects your circumstances, so regular reviews are a must.

“For example, insurers assess vehicle risk based on factors such as who drives the car most often. So, if your circumstances change, be sure to provide your insurer with the most up-to-date information.”

At the end of the day, however, Kemp reiterates that insurance decisions should not be based solely on price. “There are ways to maximise the value of your insurance, but the goal should not only be to find the cheapest cover available. Rather, it should be to ensure you have the right cover for your needs, backed by the protection and support you need when something goes wrong,” he concludes.