Dreaded Increases.

It happens every year: the dreaded increase in premium at the anniversary date of your car’s insurance policy. Most people hardly take note of this, discard the formal notification and accept it as a fact of life.

But next time this happens, take a moment to have a closer look at the numbers. Do some calculations. Determine how much the increase is – 5, 10, 15 or even 20% or more? Since the value of your car this year is 10 or 15% less than last year, premiums should actually decrease, right?

First of all, do an online comparison (like on www.hippo.co.za) and see what your specific car and your personal circumstances will cost in premiums. Hippo kicks out rates from up to 20 individual insurance companies, and chances are that your current insurer will be among them. What will your insurer charge you if you were a new client that very day – more, or less, than currently? Are other insurers cheaper, and what do the excess fees look like?

Armed with this information, jump on the phone, call your insurer and state categorically that you are not satisfied with an exorbitant increase in fees on a car that has declined in value, and that Insurer X or Y has lower fess than you pay currently.

Your insurer may cite inflation costs and other reasons to justify the increase, but you may be surprised that it may impose a really minimum increase – if at all, even offer to waive the excess entirely if you have been a long-standing client – by simply making a fuss about it.

It pays to ask. If you don’t, you’re the only one losing out.