Why insurance should form part of your new year's resolutions

Christelle Fourie-Colman, Chief Executive Officer of MUA.

With the start of another year, many consumers are in the process of setting New Year’s resolutions for 2016. While most of these resolutions are focussed on personal inspiration, exercise or healthier habits, it is also a good idea to also consider some insurance New Year’s resolutions.

This is according to Christelle Fourie-Colman, Chief Executive Officer of MUA Insurance Acceptances, who states that a lot can happen over the period of a year, so a new year presents a great opportunity to review insurance policies. “There are many ways that consumers can actually end up saving money because they minimise the risk of claims being rejected and could also benefit from reduced premiums by being a good insurance customer.”

With the above in mind, Fourie-Colman provides the below tips for consumers to set New Year’s resolution goals when it comes to motor and home insurance;

Motor insurance:

- Do not break the law while driving. Should a motorist be caught driving under the influence of alcohol and/or narcotic substances or driving without a valid driver’s licence they are considered to be partaking in a criminal offence and their motor insurance cover could be invalidated. This is especially true if an accident is caused and the driver is found to be under the influence of alcohol, in which case the claim will most likely not be paid out and the insurance company may even refuse to insure the customer in future.
- Attempt to improve your driver behaviour. If a driver is caught driving in a reckless and negligent manner or speeding excessively which leads to the damage or destruction of the vehicle (or other vehicles), the related insurance claim could be repudiated. Some insurance companies actually offer discounted rates to good drivers which is monitored following the installation of telematics devices which records the driver’s behaviour.
- Review the insurance policy annually. It is vital that consumers ensure that their policy accurately reflects how their vehicle is used. When a motor insurance policy stipulates that cover is only provided for a specific named driver, an insurance claim will only be successful if this driver was behind the wheel at the time of the incident. If other people will be driving the vehicle from time to time it is important to check what the implications of this is for the policy.
- Ensure that parking requirements are listed in the policy. Requirements for storing a motor vehicle while it is not being driven will differ between insurers; some will accept an off-street parking while others may stipulate that the vehicle must be kept behind an automatic or locked garage door or the premiums will increase.

Home insurance:

- Regularly maintain and upkeep the home. Homeowners who fail to properly maintain their homes face an increased risk of insurance claim repudiations. Most homeowners insurance policies will only cover damage caused by unforeseen events and regard home maintenance as the responsibility of the homeowner, thus any claims determined as a result of poor maintenance, or neglect, are most likely to be rejected.
- Ensure the home contents are insured for the correct replacement value. Most people tend to take out a home contents insurance policy and simply renew it every year, without taking the necessary steps to update their level of cover. For most consumers, the contents of their home is likely to change from year to year as new items are purchased, as a result the correct value to replace these possessions must be provided to the insurance provider to avoid underinsurance in the event of a claim.
- Conduct frequent valuations of home contents. It is important that homeowners take price inflation into consideration. A piece of electrical equipment that cost R5 000 ten years ago, could now cost twice that to replace. This is why it is so important to conduct regular valuations and provide updated values to the insurance provider to ensure adequate cover, especially when it comes providing accurate values for items likely to be influences by the fluctuations in the rand value, especially expensive jewellery.
- Test the home alarm system on a regular basis. All homeowners insurance policies will stipulate that it is the policyholder’s responsibility to keep the alarm system in full working condition because if theft takes place as a result of a faulty alarm, then the claim is likely to be repudiated. This includes the alarm battery being flat.

“By bearing the above in mind, consumers can be rest assured that they will minimise any insurance related hurdles in the year to come,” concludes Fourie-Colman.