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City Press reader Pam from the Eastern Cape has the following question:
“I am unemployed and had insurance covering my car and household items. By the end of last year, I knew that I couldn’t afford my premiums for household cover any more. I decided to keep the car cover and asked my insurance company to drop the household cover.
“My thought was that the premium would drop from R1 000 to R500 or R600, tops. To my surprise, it came to R800, which forced me to cancel the car cover. How does that happen?”
Budget Insurance experts Tyrone Lowther and Kubashan Naicker answer:
Hi Pam,
Generally, it’s more expensive to insure a car than a home because a car is exposed to more risks, such as theft or an accident, which ultimately affects your insurance premium.
Numerous factors are taken into account when determining an insurance premium, for example, the make and model of your car, where you live, where your car is kept at night, who the driver of the car is, what your car is used for (personal or business use), your insurance claim history and the safety record of your car, as well as the cost to repair or replace it.
The good news is that Budget Insurance offers a discount if you insure your car and your home contents with us.
At Budget Insurance, we understand that South African consumers are under an immense amount of pressure with rising fuel costs, rising energy costs and rising commodity prices.
Insurance is often one of the first costs to be cut when budgets are tight, and while it may provide temporary relief, it can have massive financial implications.
To help consumers weather this economic storm, Budget Insurance launched Budget Lite, which provides three levels of non-comprehensive cover for paid-off cars worth up to R100 000.
Budget Lite is a smart way to stay insured without paying as much as usual.
Protect your car
We spend a lot of energy protecting ourselves from the cold weather, but what about our most valuable assets? All maintenance companies will tell you that prevention is far cheaper than having to fix something after the fact.
Vehicle batteries give more problems during the winter due to the increased amps needed to start up a cold engine. To avoid a flat car battery on a winter morning, make sure you check that your battery is in good working condition. This includes keeping it clean, checking the water level and checking that you have switched off everything when you turn off your engine – for example, don’t leave your lights or radio on. Going in for regular services will also increase the life of your battery.
Tyres need to be kept in good condition and replaced when worn out, especially during the winter months in areas where roads are wet and slippery. According to South African law, your tyre tread must be at least 1mm deep – anything less is considered unroadworthy.
Your windscreen wipers must work well. Avoid using the wipers to clean mud or soil off the windscreen, as this can scratch the glass.
If possible, park your car under cover, especially during extreme weather. If you don’t have covered parking, consider buying a car cover.
For more information on Budget's cover:
