Tips for Decreasing Insurance Payments

When consumers in the current South African economic climate look for ways to cut back on day to day expenses, few consider touching their insurance policies. To most people, the idea that one could change an insurance policy is quite alien, and many are fearful that they won't be properly covered in the event of an accident or other disaster.

An insurance expert, however, is showing policyholders that there several things that they can do to save some money each month, all the while ensuring that they are covered in the right areas.

One way suggested by Gari Dombo, the Managing Director of Alexander Forbes Insurance, is to self insure. Self insurance generally means that the policyholder builds up a kitty that will cover the loss of an important piece of jewelry or other valuables and then removing that item from the list of insured items. Dombo stresses, however, that items that are essential for the policyholder's survival should not be un-insured.

"For example, things like cell-phones, rings and watches, along with most of the stuff you use on a daily basis, are all replaceable at not so crippling costs," said Dombo.

He also suggested that consumers reconsider the need for All Risk insurance once they have built up a self insurance kitty to cover the small day-to-day items.. "You might even decide that you don't need to ensure them at all," said Dombo. "In the event that you were to travel abroad, you could always take up temporary travel insurance."

There are a number of steps that people could take to decrease their risk and therefore their insurance costs. For example, building a lock up garage may reduce car insurance premiums drastically, while moving to a high security residential complex may reduce theft cover premiums.