There is most definitely truth in the old adage ‘you get what you pay for’ – although, when it comes to paying less for car and home insurance, it’s more a case of what you don’t get for what you pay for.

“Cheap car and home insurance rarely translates to ‘best insurance’.  Minimal price often means minimal insurance cover, which gives you minimal protection,” warns Peter Olyott, Managing Director of Indwe Risk Services.

With this year’s budget speech looming, along with projected increases in food prices, and the threat of a massive 80c per litre hike in petrol prices, everyone is really beginning to feel the pinch. 

You’ve probably looked through your bank statements and household expenses to see where you can cut down your costs – home and car insurance premiums are most probably close to the top of your list.

Everyone is wondering how they’re going to make the same amount of money stretch further and further each month, and every rand you can save on your insurance costs is another rand that stays in your pocket – whether that means reducing your premiums or getting rid of certain insurance all together!

There are plenty of tempting offers being advertised in the media: new budget insurers are offering the low prices with decreasing annual premiums, alongside more established companies promising cashback if they can’t beat your existing premium or quote.

At first glance these offers may appear to offer you some financial relief, but when it comes to saving on your car and household insurance, cheaper isn’t always better.

“The reality may be that you have simply purchased a low amount of insurance cover,” cautions Peter, “which could result in you not having enough to cover an accident and land you with a huge, and unwelcome, bill for the costs your insurance won’t cover.”

“There’s nothing wrong with looking for low-cost car insurance, and if you don’t want to lose vital cover, look for discounts available to you,” he continues.  “Some of our most popular discounts include:  multi-car discount, homeowners discount, vehicle tracking device discounts, and home security discounts.”

Another way to cut your insurance costs is to increase your deductibles; it will certainly reduce your monthly premium by a little bit, but it will also increase the cost of claiming.  By saving yourself a few rand each month, you’re exposing yourself to the risk of having to pay out as much as R2 000, up front, when you file a comprehensive claim – all of a sudden that saving won’t seem worth it at all.

So in these tough economic times is it possible to get the cheapest and best insurance?

“It all starts with smart shopping,” reveals Peter.  “Get and compare quotes side-by-side. Speak to a reputable insurance broker like Indwe Risk Services, to make sure you’re comparing apples with apples and to cut through any insurance jargon.”

“A broker can identify the best cover to suit your level of risk and your lifestyle, so you can rest safe in the knowledge that you’ll end up with the right policy match,” he concludes.