In recent years, short-term insurance premiums in South Africa have grown significantly. In 2022, gross written premiums reached R140.1 billion, reflecting a 9.7% increase from the previous year. This upward trend continued, with an average premium increase of 2.2% from the third to the fourth quarter of 2023.
In recent years, short-term insurance premiums in South Africa have grown significantly. In 2022, gross written premiums reached R140.1 billion, reflecting a 9.7% increase from the previous year. This upward trend continued, with an average premium increase of 2.2% from the third to the fourth quarter of 2023.
As many South Africans are still recovering from overspending in the festive season, financial pressure is a reality. Some may consider cutting back or stopping their monthly insurance premiums to save on expenses. However, this would be a mistake, as it leaves them vulnerable to greater financial risks in the future. Instead, they should discuss their options with their insurance provider.
Understand Your Insurance Needs
Before negotiating, take time to assess what coverage you actually require. Whether it’s for your vehicle, home, or business, ensuring you’re not paying for unnecessary add-ons can help lower costs. Comparing multiple policies also increases your chances of finding the best deal.
Leverage Preventative Measures
Insurers assess risk when calculating premiums. By implementing safety measures—such as installing security systems, fire prevention measures, or parking in a secure location—you can demonstrate reduced risk and potentially lower your premiums.
Bundle Your Policies
Insurance providers often offer discounts to customers who bundle multiple policies, such as home and vehicle insurance, under one provider. Bundling can lead to savings of up to 25% on the cheaper vehicle’s premium and up to 15% on building cover. Additionally, insurers may provide loyalty discounts for customers with a no-claims history.
Adjust Your Excess
Opting for a higher excess— the amount paid out-of-pocket before insurance kicks in—can reduce your monthly premiums. However, it’s important to ensure you can afford the excess amount should you need to claim.
Review Your Policy Annually
Your risk profile may change over time, and insurers should reflect this in your premium. If you’ve moved to a safer neighborhood, installed security features, or reduced your vehicle’s mileage, you may be eligible for lower premiums. Regularly reviewing your policy ensures you’re not overpaying.
Secure the Best Deal Without Compromising Protection
Negotiating a lower premium isn’t just about saving money—it’s about ensuring you have the right coverage for financial security. By proactively engaging with your insurer, leveraging discounts, and reviewing your policy, you can strike the right balance between affordability and protection.
