Tightening your budget shouldn't mean cutting your insurance cover

In the wake of the recent Budget Speech and the VAT increase, along with the news that personal income tax brackets won't be adjusted to account for inflation, many South Africans are having to rethink their monthly budgets.

But Wynand van Vuuren, client experience partner at King Price Insurance, warns that cutting back on spending should not mean cancelling your insurance. "Insurance offers financial security in times when you need it the most. If you can't afford to replace your car, home, or everything in it, out of your own pocket then you need the protection that insurance provides."

In the below, Van Vuuren shares his top five tips for getting more out of your cover when times are tough.

Be rewarded for loyalty: It may at one time have made financial sense to look for the best prices for individual assets, and to insure your car, buildings, and other valuables with different providers. However, these days, clients are more likely to be rewarded with a lower premium when they cover everything they own with one insurer. So, if your loyalty is divided when it comes to your cover, now's the time to commit to the best single premium you qualify for.

Take advantage of discounts: For cars, the more of them you cover with one insurer, the more you can save... Up to 20%, in some cases. If you're a multiple-car family, look for an insurer that offers a discount for covering them all.

Get decreasing premiums: Most insurers only ever charge more to insure cars that are only ever worth less. However, King Price is still the only insurer to offer premiums that decrease monthly as your car loses value. "After all, it's the fair and logical way that insurance should be done," says Van Vuuren.

Make the most of every Rand: These days, you can't get much for R1 but, if you comprehensively cover a car with the king of insurance, you can cover your bicycle, golf clubs or hearing aids for just R1 monthly!

Leverage your secure living: Around 40-50% of the risk covered by comprehensive home contents insurance is linked to theft. If you live in a secure estate or complex... We're talking access control, booms, patrols, armed response... And your theft risk is very low, consider switching from comprehensive cover to a 'fire and fury' option that takes theft out of the equation but still covers other risks like fire and storms. Same peace of mind, just at a reduced premium.

Van Vuuren also reminds consumers to talk to their insurers if they're having trouble making their monthly payments. There are, for example, alternatives to comprehensive car cover that may not cover all the risks but which do offer a degree of protection. "All car insurance in South Africa covers for 'third party liability' and it can potentially save you hundreds of thousands of rands following an accident. It's an absolute must-have."