We are only a month into 2025 and as South Africans still hold onto new beginnings ushered in by the new year, taking stock of your financial house is likely the top goal for most households.
Rudolf Britz, Chief Actuary from Momentum Insure believes insurance cover review tends to take a backseat to other financial concerns, but that needs to change.
Ignoring your insurance cover needs leaves you exposed to more risk, and neglecting your insurance review can have major consequences.
"Insurance is like a safety net. You may hope you never need it, but it’s comforting to know it’s there. But would you trust that net if you hadn’t inspected it in a while? Regularly review your cover, maintain adequate protection and do it all without overpaying for cover you don’t need," Britz said.
Life changes
Over the course of a year, life can change in many unexpected ways.
Lifestyle shifts like buying a new car to moving house, may require adjustments to insurance policies. Consumers should consider how life changes can impact their coverage.
Britz said: "Ask yourself. Am I adequately insured? Do I have sufficient cover for my home and car? Your policy should reflect your current lifestyle and future needs."
Vehicle insurance
According to Britz, a common mistake that consumers make is failing to update car insurance policies when their circumstances change.
If you have recently bought a new car, modified the vehicle, or changed the primary driver, your policy needs to reflect these updates.
"Accurate, up-to-date information is crucial to avoid complications when making a claim. Failing to update your policy could lead to your claim being rejected or underpaid," Britz said.
To make this process easier, Britz suggests pairing your insurance review with routine activities including vehicle servicing or pre-holiday safety checks.
Britz said: "Whenever you take your car in for a service, take a few minutes to ensure your insurance details are current. This way, you’ll always be covered without having to remember it as a separate task."
Home and personal insurance
Homeowners who have renovated or made improvements to their property should also reassess their policies to make sure that their properties have sufficient insurance cover.
This can include upgrading a kitchen, adding a security system, or extending a home.
Those who have acquired valuable items over the festive season should update their contents insurance to reflect their current possessions, failing to do so can result in being underinsured.
Take control of your financial security
Insurance is not a one-size-fits-all product, and as financial situations and lifestyles change, so should your insurance cover, according to Britz.
An annual insurance review is a proactive step that ensures that consumers are protected against life’s uncertainties while optimising their coverage and costs.
With expert advice, reviewing your insurance can be a stress-free process that can ensure a secure and successful year ahead.
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