Press Releases & News

Consumers, world-wide, are feeling the economic ‘pinch’, with many simply trying to stay afloat in terms of their bond and car repayments. Long-term financial commitments often take precedence under these circumstances.

“When disposable income is reduced, it is always a temptation to cut expenses wherever possible and the supposedly ‘nice to have’s’, such as short-term insurance cover, are usually the first to go,” says Helen Szemerei, insurance services director at the IntegriSure Insurance Group of companies, an authorised financial services provider offering specialised short-term insurance and other products for niche markets.

Although nominal amounts may be saved on a monthly basis, the financial impact, should a car accident or home break in occur, could be crippling. The number of car accidents in South Africa is high, due, in part, to the state of our roads and the incidence of un-roadworthy vehicles being driven by often unlicensed drivers. According to a 2006 Commission for Road Safety study, these two factors alone are responsible for 10% to 15% of the accidents.

South Africa’s 2007 Bi-annual Government Performance Barometer Survey, conducted by Ipsos Markinor, the first marketing research company in South Africa to receive ISO 9001 certification, further revealed that, although the incidences of ‘petty crime’ are down, residential and business property robberies, truck and car hijackings are up by 13.5%, 47.4%, 39.6% and 4.4% respectively. Reducing, or cancelling, this type of cover could therefore be far more costly in the long-term.

When considering these statistics, it is concerning to note that, in a recent survey conducted by justmoney.co.za, 38% of South African consumers indicated that they would shop around for cheaper premiums, 31% would simply pay the related costs, 18% could no longer afford their premiums and 13% would attempt to negotiate a lower premium with their insurer.

“It is important to remember,” says Szemerei, “that if your home or car is financed, insurance cover is mandatory. Let your insurance company know if you’re battling to meet your monthly expenses, don’t just cancel or default.”

Insurance companies will often offer clients the following options:

• Additional voluntary excess, resulting in a reduced monthly premium. The client may also determine the level of excess he or she wishes to opt for (the higher the excess, the greater the discount in premium).
• Installing the necessary home and motor vehicle security measures as these have a direct impact on insurable risk cover and the insured may be entitled to additional discount for securing his or her valuable assets.

“It is important to also remember that the cheapest option is not always the best. Keep your insurance policy information updated, and negotiate when premiums become unaffordable – many consumers have managed to keep their most valuable assets insured in this way,” concludes Szemerei.