New Year, New Budget: How to Optimise Your Budget and Car Insurance

As we head into a fresh new start and turn over a new page, it’s also time to relook at your budget – including those monthly car insurance premiums going off your account. While it’s never a good idea to cancel your car insurance, you can reassess it. We share some ways to optimise budget and car insurance for 2025. Whether you’re a new driver or reassessing your current policy, these tips will help you get the best deal without compromising your cover.

How Often Should I Review My Car Insurance Policy?

A lot can change in a year, and your car insurance is no exception. To ensure your policy is still the right fit for your current needs and that you’re making the most of every cent, reviewing your car policy every year is generally a good idea. Set a reminder in your calendar to make sure you always review your policy annually.

Also, remember that your life circumstances might change and that this could affect your premium or claims. Always update your car insurance provider about any changes so they can change your policy accordingly.

It could save you money while ensuring you’re still fully covered if you’re in an accident or your car is stolen.

Update Your Personal Details

Life changes can impact your car insurance premiums. If you’ve moved to a safer neighbourhood, now drive fewer kilometres, or added a tracking system to your car, let your insurance company know. These changes could help reduce your premiums.

Similarly, ensure your details, such as your address and regular driver information, are up to date. Outdated information could complicate the claims process and even affect your cover.

What Should I Look at When Reassessing My Car Insurance?

As with any budget, you should first ask yourself whether the cover you currently have is the right fit. Do you have to consider increasing your cover to a more comprehensive offering? Look at the different car insurance options and what is included. Keep in mind that these might differ from insurer to insurer, and that some offer unique benefits.

Types of Car Insurance Options to Consider

Understanding the different types of car insurance is key to choosing the right cover for your needs. Here’s a breakdown of the main options:

Comprehensive Cover

This is the highest level of protection, covering damages to your car and others, as well as theft, natural disaster and fires, and more. It’s ultimately the widest cover you can have which is important, especially if you have a newer or expensive car. If you’re looking at buying a new car and getting it financed, comprehensive insurance is often a requirement.

Third-party, Fire, and Theft

This covers damages to another person’s car and protects you if your car is stolen or damaged by natural disaster & fire.

Third-party Only

This basic option covers damages to other cars but not your own. When reviewing your policy, consider how old your car is, how much you drive, and whether the cover suits your needs. Remember to never cut corners on essential cover just to save a bit – cheap insurance today can cost you far more if an accident happens!

Adjust Your Excess to Manage Premiums

Your car insurance premiums are influenced by your excess – the amount you agree to pay when you claim. Increasing your excess can lower your monthly premiums, which is helpful for those looking to save. However, make sure you can afford the excess in the event of an accident.

Balancing your excess and premium is key to optimising your car insurance budget. Don’t set your excess so high that you can’t manage it during a claim.

Why Comprehensive Car Insurance Matters

While the cheapest car insurance options may be tempting, it’s important to consider the risks of underinsurance. Comprehensive car insurance provides peace of mind, covering you if your car is stolen, damaged in an accident, or impacted by fire or natural disasters.

Even if you think you’re saving with a lower level of cover, the costs of repairs, replacement, or liability can quickly add up. However, comprehensive cover ensures you’re protected against unexpected expenses.

What if I Can’t Afford Comprehensive Car Insurance?

If you really can’t stretch your budget to opt for comprehensive, don’t despair. For example, there are options like Customised Cover and Third-Party PLUS, which have been designed just for this. Every South African driver should have access to reliable car insurance that fits their budget, and these options also come with unique benefits to give you even more bang for your buck.

Can I Switch Car Insurers if I Still Have an Ongoing Claim?

Technically, yes, but the claim must be resolved by your current insurer. Ensure there’s no gap in your coverage during the transition to a new insurer to avoid potential problems like new incidents being denied or a lapsed policy.

Is It Better to Stay With My Current Insurer if I’ve Been With Them for a Long Time?

Although loyalty is great and can sometimes give you great perks, it also does not necessarily mean you’re paying the best price.

Comparing quotes can help you get a snapshot of what other insurers are offering. Even those who have been with the same insurer for many years tend to review their policy to see that they’re still getting the best deal – and one that makes the most sense.

Also, before you switch, make sure you read online reviews about the car insurer. You’ll want to look specifically for ones mentioning the claims process and support reviewers received.

Save on Car Insurance in 2025

Start the new year on the right foot by seeing how much you can save on your current policy. You can get a quick, obligation-free online quote from us, and you can even buy and activate your car insurance online.

Contact a trusted car insurer to help you find tailored, affordable car insurance that suits your needs and budget.

How to Compare Car Insurance Quotes

If you haven’t compared car insurance quotes recently, you may be paying more than you need to. Different insurance companies offer varying premiums based on your car, driving history, and needs.

By shopping around, you could find a more competitive rate while maintaining the same level of cover. Never just assume your premium increases are normal. You never know whether a different provider could offer you a better premium!

You can use online tools or get a car insurance quote directly from trusted providers. Look at key factors like excess, claims processes, and the type of cover offered before switching.

Only get financial advice from a certified financial advisor and insurance from a trusted service provider.

Disclaimer

This article gives general tips on managing your car insurance budget. Please note that it’s not intended as financial advice. Always review your car insurance policy carefully and consult with your insurance company to ensure you have the appropriate cover for your needs.

Learn more about getting affordable, comprehensive car insurance with fixed premiums* and a reduce-to-zero excess*. *T&Cs apply.