Did you recently get married? Move in with your partner? Or maybe you made some adjustments to your property. Every year, our lives change and every new year we ‘spring clean’ the clutter to make way for the new resolutions. But more often than not there is one thing we always put on the back burner. The dreaded, yet all-important, insurance contract. Your contract with your short-term insurer is automatically renewed, but for most consumers it simply ‘ticks over’ without having scrutinised it to check that you’re neither over or under-insured. This is all well and good, until disaster strikes. The ombudsman for short-term insurance, Deanne Woods, repeatedly encourages consumers to review their insurance policies every year. At Santam, we recommend ‘spring cleaning’ your insurance policy may even help you save some money in the long run. Marius Neethling, Personal Lines Underwriting Manager at Santam gives the below four tips on how you can ‘spring clean’ your insurance policy to help you save some money in the long run. 1. Adjust the amount you’re insured for: The main reason for reviewing your policy is to make sure that you are insured for the right amount – this is what insurers call the ‘sum insured or limit of indemnity’. Over the course of the past year, you may have bought a brand new bicycle and a couple of other items, all of which means you will have needed to adjust the contents of your home insurance cover. 2. Underinsurance: This may sound obvious, but, with the exception of 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. 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. But to replace the couch would cost R20 000 today, so you could be left very disappointed when you leave the shop with an inferior and smaller couch than the one it replaced. 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. 3. The structure of your home: If you’ve enhanced the value of your home by replacing your roof, redoing your kitchen or improved your home by installing a swimming pool, you need to increase the amount your house is insured for too. 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. 4. Your car: Your car should be insured at a ‘reasonable market value’. 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. If you’re wondering what your car is worth, you are requested to contact your broker or Santam directly (should you not have a broker) to work out the reasonable market value of your car with a car calculator provided by Santam. Neethling 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. Help us help you by ensuring that you are adequately insured for your household contents and vehicle.” To review your personal or business insurance please contact Edmond email: shortterm@daberistic.com Source: Personal Finance
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As we enter the holiday season, many South Africans will be heading off for a well-deserved break. But, it’s also that time of the year where we need to take extra safety precautions. Here are some holiday safety tips to help ensure your clients are doing all they can to minimise risk. Safety at home Burglaries and damages are on the rise during the holidays. That’s why it’s important that your clients are properly covered if something goes wrong. Here are some steps they can take before they lock up and go:
We offer SOS services including roadside assistance, route assistance and home drive assistance, as part of our vehicle cover should anything happen on the road. Help your clients prepare properly by sharing these road safety tips:
Safety for small businesses Smaller businesses are often cash-intensive which makes them especially vulnerable to crime during peak holiday season. If your client is a business owner, there are some precautions they can take to ensure they are protected and prepared for any potential criminal attacks:
Source: Santam Author: Edmond Lee So you recently bought short-term insurance, thinking that you are covered fully regardless of the circumstances? Think again. Many insurance buyers forget that insurance is based on certain fundamentals which must be adhered to in order to have continuous cover. The rationale is that although insurance is a risk transfer mechanism, there is still a responsibility for client to manage risk effectively. Below are some key ones which may be useful to you. Did you know?
Below are some key points that relate specifically to motor insurance:
We at Daberistic believe that by providing the right advice and solution to clients, we can create win-win relationships which will ultimately benefit everyone. If you are looking for advice on your short-term insurance needs, you can contact us on the following channels:
The other day while driving we noticed a huge advert which indicated that cheap insurance price is the way to go”. Now, three short-term insurance brokers seated in one car can create some interesting conversation. I was the first one to pipe up saying that of course that is simply not true. Next, I said that unfortunately a large portion of our buying public thinks in the same way. I will explain to you why this is the case. Three months ago, someone approached us for insurance quotes for his motor vehicle, following a shocking discovery on his existing policy with another insurer. His car is currently the most popular German hatchback in South Africa, read: a perfectly normal new car. What he discovered was that he had a basic excess (also known as first amount payable) of R27500!!! He was paying a super cheap premium for a month with them. He supplied a copy of his policy to us and I can tell you that the excess is displayed on the second last page out of many pages, almost as if they are trying to hide it from the client. Thank goodness, he discovered this fact before he had any claim. Here comes the equally (if not more) interesting part: the client subsequently took out a policy through our brokerage, paying approximately 65% more in premium. How many clients are willing to pay more for… less? This client certainly is. Less excess that is. Now: please tell me Does price really rule? Let’s say the client had an accident with damages totaling let’s say R35000 (the cost of a perfectly normal repair job in SA… for a small accident). Would he have got anything worth claiming for back from his old insurer? Off course not. This brings me to a conclusion that what matter most is that the client is covered and come claim stage it is affordable. Now let’s say it all together, Let’s say it all together now: Price does not rule but Cover rules! To get a comparative quote done please contact Jan in our Short-Term Department email shortterm@daberistic.com, tel (011)658 -1333 Source: Jan Prinsloo (Daberistic Short-term Broker) When times are tough, we understand that people try to save money wherever they can. But never compromise on quality insurance of your most prized possessions. At Santam, we feel there are always ways to structure your policy to suit your pocket so you’re properly covered and we can pay your claim. Let’s look at ways to do this. How to afford quality insurance First of all, do a quick run-through of your lifestyle, profile and assets. These are the factors that determine how much you are charged every month. Things change all the time – for example, you may have installed extra security measures around your home and not told us, or you’ve changed jobs and your car is now parked in an underground garage instead of outdoors. Perhaps your student daughter now has a job and no longer lives in a high-risk city area. Just by updating your profile, you may find that your premium decreases or that you risk profile has changed. Saving on car insurance premiums Consider Third Party Only car insurance: This is the minimum amount of cover you can give your vehicle, making it the cheapest there is. Raise your excess payment: The greater your excess is, the lower your premium. During the quotation process, you will be asked to select the amount of voluntary excess you will be prepared to pay in the event of a claim. Although there is a compulsory excess amount, you can always choose to increase this. This would mean paying more out of your pocket, so make sure you can afford the higher excess amount. Pay for smaller damages yourself: If you are able to keep a rainy-day fund for smaller nicks and dents, you will manage to stay claim-free for longer and get a big reduction on your premium. Make sure the correct person is noted as the regular driver: Your risk factor is determined by the person who most often drives the car, so be sure to keep this information updated. Install additional security features: Although we know this means spending more money, drivers who install tracking systems in their vehicles could benefit from a lower premium. Vehicle tracking technology could also impact your risk profile, as it will be easier to recover your car in case of a theft or hijacking. How to reduce home insurance payments Increase your excess payment: The greater your excess is, the lower your premium. During the quotation process, you will be asked to select the excess you will be prepared to pay in the event of a claim. Although there is a compulsory excess amount, you can always choose to increase this. This would mean paying more out of your pocket, so make sure you can afford the higher excess amount. Pay for smaller damages yourself: If you are able to keep a rainy-day fund for smaller repairs, you will manage to stay claim-free for longer and reduce your premium. Upgrade security features: Installing a home security system or upgrading your existing security measures can decrease insurance premiums – plus ensure that you are safer. Also join a neighbourhood or block watch, as some insurers will offer reduced rates to homeowners who belong to these types of organisations. Tip: Combine your car, home and building insurance to reduce your insurance premium. To get a quote and cover that will be sufficient for you please contact Sandy in our Short – Term Department, email shortterm@daberistic.com , tel (011)658-1333 Source: Santam Insurance can be a tricky business and it’s probably because of this that there are so many myths floating around about insurance and how it works. Here are some myths explained;
1. My insurance will pay off my vehicle finance if my car is destroyed If your car is financed, you will find that this is not necessarily true. When insurance companies pay for a written-off vehicle, the payment is based on how much the car is worth at the time of the accident. Seeing as your vehicle loan is based on how much your car was worth when you bought it, the insurance amount paid out may not be close to your loan amount because cars generally depreciate quicker over time – faster than the rate at which you are able to pay off your loan. Your loan also includes financing fees and interest, which are not covered by your insurance. Some insurers might offer a top-up insurance policy that can cover most of the shortfall between the insured amount and the loan amount. This is usually optional, so remember to select this cover if you need it. 2. I don’t need insurance Even if you are a fantastic driver or a very conscientious home owner, the fact is that accidents happen and possessions get stolen. Whether an event like this is your fault or not, it could cost you money that you might not have to get your car or home repaired or to replace your stolen items, for example. There are a variety of insurers out there that offer a selection of prices and policies. In fact, getting a quote these days is quite painless and you get to find out just how much you will pay in the end. Everybody needs insurance and very few will be able to afford what they lost without the help of insurance. If you are concerned, but are not sure how to proceed, it’s best to contact a financial adviser who can give you proper advice regarding your insurance needs. 3. My car’s colour will affect my insurance premium Most insurers don’t care about the colour of your car. In fact, they are more interested in knowing whether you’ve had any accidents before, the type of vehicle you have, the car’s age and a variety of other factors. To make sure, ask your insurer if they use the colour of your car to determine your premium. 4. I should get building insurance based on my property’s real estate market value You should get building insurance based on the following:
Source: Discovery Please contact Thomas or Innocentia in our Short Term Department; email shortterm@daberistic.com , to get your personalised car and household insurance quotes. |
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January 2025
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