A Contradictory Life

Making the best of insurance


Don’t sell insurance. Sell what insurance can do. - Ben Feldman

I finally published a post on why I drove an old car. In it I mentioned insurance and how the expense can drastically add up over a couple of years into quite a meaningful number. Insurance is a gripe payment for everyone. I, along with most people I would hope, pay; medical aid, car insurance, household insurance, life insurance and disability cover.

It is a lot to pay for “maybe”.

Many people describe the Business of Insurance as A Sucker’s Game but it is a non-negotiable for me, and should be for you too.

There are a few things that you could do though to make sure that you are adequately insured and at the right price:

  1. There is nothing sillier than being over-insured – make sure that you buy as little insurance as possible to avoid major losses and self-insure the little things. I would suggest meeting with a reputable financial adviser to do so. Ask around to see who your friends, acquaintances and colleagues recommend or comment below and I will refer you to someone great.
  2. Shop around for the best rates –  Do not just stick to the insurance company that you are currently with when you buy something new or want to add something to your policy, shop around and move if you find the offering and pricing to be better somewhere else. I have personally moved insurance companies three times in the last four years (and banks three times) – it is easy enough to make the most of your money so do so.
  3. Review your insurance policies annually – When it comes to car insurance the value of the asset being insured is depreciating every year so make sure that you are not paying insurance premiums based on a car valued at X when it is in fact only worth 2/3 of X for example.

I am pretty slack on this last point. Maybe it is because my previous car was so old it was actually increasing in value by inflation every year but now that I have a new car I definitely need to make sure that I am getting the best value for money on my insurance payments.

For everyone, like myself, that is not organised when it comes to re-submitting an updated value of your car and going through the admin of updating your policy:

King Price Insurance offers super cheap car insurance premiums that automatically decrease monthly to correspond with the depreciating value of your car, which is a first-of-its-kind deal in South Africa!

You car’s value is worth less every month, so why shouldn’t your premiums be too? At King Price, we decrease your comprehensive car insurance premiums every month.

I don’t own any expensive jewellery or watches and my laptop is insured through work but something else that Wes and I also insure without question is all of our bikes (yes, we have seven between the two of us). You can read more about the king’s portable possessions insurance for your precious things here.

Do you think that you are under- or over-insured? Either way, I think making sure that you are adequately insured at the right premium is one of the best smart money habit tips I can give you.

This post has been sponsored by King Price Insurance but my views on adequate insurance at the right premium, and the importance thereof, remain mine.