Spring clean your insurance

Nthabiseng Moloi, Head of Marketing & Brand at MiWay.

Spring has finally sprung, bringing with it warmer days and the distinctive scent of jasmine wafting in the breeze. Typically, this new season filled with promise is one that triggers a desire to spring clean - to clear out the winter cobwebs and start afresh.

While this type of exercise is traditionally one associated with clearing blocked drains and clearing out cluttered garages, there is also no better time to consider refreshing your insurance policies, ensuring you have the correct cover in place to protect you no matter what the future brings.

When it comes to insurance, an annual check is always a good idea. After all, a lot can change in the course of a year. You might have moved, purchased a new car or invested in an expensive new sound system, something your insurer may not be aware of.

It is equally important to interrogate whether your existing cover is serving you optimally and analyse ways in which you might be able to lower your premiums and make those monthly debit orders feel decidedly less overwhelming.

So, as the new season dawns, here are a few key ways to give your insurance a spring clean:

Mitigate motoring expenses

For many South Africans, car insurance is responsible for causing a fairly significant dent in our monthly expenses. However, by making a few key changes to the way you drive and relooking your cover, you can free up some funds in time for summer.

Firstly, it is worth comparing your options, and getting quotes from a few different insurers to ensure the premium you are paying is market related. You will also be able to cut costs by increasing your excess payable, which will lower your premiums, but could be problematic in the event of an accident if you are unable to afford the excess amount.

Some insurers also reward good driving, so if you have gone a couple of years without claiming, you may be able to relook your premiums; make sure to keep in contact with your insurer or broker. You should also be able to renegotiate your monthly premiums based on the security of your vehicle. So if you have found a secure parking place or are now living in a complex, you will want to contact your insurer and inform them of same.

If you have changed your daytime address or for some reason are now using your car for business, you need to make sure your insurer knows in case of an accident or theft. If you are no longer using your car for work purposes, it is in your interests to let your insurer know, as it could make you eligible for lower premiums.

You will also need to get in touch with your insurer if you have a child who is now using your vehicle more often. If you have not noted them as a regular driver on your policy, you may not be covered in the event of an accident. Remember, this applies to anyone else who might be driving your car other than yourself.

Consolidate your insurance

One easy way to start saving this spring is to consolidate all your cover under a single roof. Many of us tend to have different items covered by a variety of insurance providers, in many cases duplicating parts of our policies and in most cases paying more per month than is necessary.

By unifying your insurance policies with a single service provider, you not only stand to lower your overall monthly expenses, but also help to reduce the likelihood of gaps in your cover. Additionally, you will be able to enjoy a central access point for all your cover online, enabling you to easily and seamlessly keep tabs on all your policies at the click of a button.

If you recently got married, you can also look to combine your insurance with that of your spouse, adding your vehicles and properties to a single policy, which could end up resulting in a significant discount on your monthly premiums.

Cut the credit shortfall

Credit shortfall insurance is an essential extra for new vehicle owners, covering the critical gap between the purchase price and the insured value of your car. However, at a certain point, there will come a time when the amount owing on your car is less than its actual value, at which stage this type of insurance is rendered unnecessary. So make sure to check how much you have still got to pay off on your car and ensure that you are not paying for cover you don’t need.

Take inventory

Measuring the value of your household contents is a very difficult undertaking, particularly if you have a garage piled full of things you have not seen in months or even years. That is why it is important that you take inventory from time to time so as to better understand what you have under your roof and thus making sure that your cover is sufficient in the event of any losses. Equally, the premium you are paying might in fact be covering you for a greater value than is necessary, so take stock and make sure you optimise your insurance for maximum savings this spring.