A recent survey from the National Association of Insurance Commissioners (NAIC) found that over half of survey respondents believe that if they died within the next 10 years, their beneficiaries would depend on their life insurance payout to meet their financial obligations. Help us help you by ensuring that you are adequately insured for your household contents and vehicle.Life insurance can help families that could struggle financially if a family member dies unexpectedly by replacing lost income or providing funds to beneficiaries to pay living expenses. It’s simple: If you are driving less than 15 000km a year, you could save up to 20% on your insurance premium.īlaauw concludes, “It is important to ensure that you update your insurer about any major changes for many reasons to avoid any disappointments when an incident that requires you to claim from your insurer occurs. In response to these changing circumstances and the evolving needs of clients, Santam offers the SmartPark distance-based vehicle insurance benefit - where clients’ insurance premium will be recalculated and discounted based on the revised number of kilometres they are likely to travel in the foreseeable future – all without having to restructure their policy or compromising their cover. As a result, there are fewer vehicles on the roads, with less exposure to everyday risks. Save on car premium: The daily driving routines of consumers have changed significantly. You can use Santam’s car calculator to do so.ĥ. If you’re wondering what your car is worth, contact your broker or insurer directly (should you not have a broker) to work out the reasonable market value of your car. Reasonable market value is the retail value, which is what a dealer would sell it for, considering its age, the mileage, the condition of the car and any extras. Your car: Your car should be insured at a ‘reasonable market value’. Your house (its structure) and your belongings (the contents of your home) must be insured at their replacement value – that is, what it will cost you, at the time of a claim, to replace/rebuild the building (your home) or belongings with similar, new structures or items.Ĥ. The structure of your home: If you’ve enhanced the value of your home by replacing your roof, redoing your kitchen or installing a swimming pool, you need to increase the amount your house is insured for. For this reason, insurance companies usually automatically adjust your sum insured each year so that the covered amount keeps pace with inflation, and this should be made clear in your policy document.ģ. But to replace the couch might be R20 000 today. Very often, we find that goods remain insured for their original value – for example, a leather couch bought 10 years ago would be insured for R6 000. Underinsurance: This may sound obvious, but, except for motor insurance (see below), the value of the goods insured should equal what it would cost to replace them today, not the original purchase price. Or maybe, the value of your car has depreciated, and you want to lower the premium you pay, accordingly.Ģ. Over the course of the past year, you may have bought a brand-new bicycle and a couple of other items, all of which mean you will need to adjust the contents of your home insurance cover. Adjust the amount you’re insured for: The main reason for reviewing your policy is to ensure you are insured for the right amount – this is what insurers call the ‘sum insured’ or ‘limit of indemnity’. Attie Blaauw, Personal Lines Underwriting Head at Santam, gives the below five tips on how you can clean up your insurance policy to help you save some money in the long run.ġ. Santam says that ’reviewing’ your insurance policy may even help you save some money in the long run. This is all well and good, until the unforeseen happens. For most consumers, it simply ‘ticks over’ without the policyholder going over the finer details to check that they’re neither over nor underinsured. Your contract with your short-term insurer is automatically renewed. Managing one’s finances and finding ways to cut unnecessary expenditure has never been more important and quite often we forget to declutter that all-important short-term insurance contract. It’s easy to overlook one’s finances, but money should be a pivotal part of this process. Attie Blaauw, Personal Lines Underwriting Head at SantamĮvery year, we resolve to ‘do better’, change things up and be the best versions of ourselves.
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