How to ensure your insurance keeps up with your key life stages

As you move through your life, hit milestones and amass assets, you must always ensure that your insurance keep up with your life stages. As your life changes, so do your risks and your policies should keep up.

“The first big insurance milestone is your 25th birthday, Wynand van Vuuren, client experience partner at King Price Insurance, says. “When you turn 25, the best gift you can give yourself is a call to your insurer to ask them to review the premium you pay for your car. Most insurers consider under-25 drivers a risk and may review their premiums when they ‘come of age’ provided that their claims history is healthy.”

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Between the ages of 30 and 35 you will probably start to acquire more expensive furniture and appliances that should be insured in case of loss or damage.

“Insurers love clients who put everything on one policy and will often offer lower premiums for these clients. When you get quotes, remember to get cover for your cell phone, laptop, tablet and other gadgets and items that you take with you when you go out. These are considered portable possessions and may not be covered under your home contents policy,” Van Vuuren says.

Buying new furniture or tech

It is also important to remember to update your insurance whenever you invest in home contents. The total value that your home contents are covered for should always be enough to replace every item, from your trainers to your teaspoons, at its retail price as at the time of the claim – not when you bought them, he warns.

“Your next milestone may be getting married or buying a home. While you do not have to invite your insurer to your wedding or housewarming bash, you do need to keep them in the loop regarding these achievements.“

He says it is a strange but true fact that your marital status affects your insurance premium. There are also opportunities for married couples to save on their insurance by combining their home contents policies and taking advantage of discounts offered by some insurers for having more than one car on a policy.

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When you buy a home, the institution (normally a bank) that provides the financing (bond) will insist that you have comprehensive insurance for the buildings because the property basically belongs to them until you paid the very last bond instalment and it is your responsibility to protect their asset.

Van Vuuren says the bank will probably give you an insurance quote as part of the bond paperwork, but you are not obliged to accept its quote and have the right to shop around for the best premium.

When you buy a new or used car

“The same is true when you finance a new car. The institution that provides the financing makes it a contractual obligation for you to have comprehensive insurance for the car, because it remains its property until you paid back every cent you borrowed, plus all the interest and any other charges.

If you cancel this insurance and the car is written off or stolen, you will still be liable for any outstanding financing amounts.

“Your insurer has your back through all your life stages. Whether you are hitting major milestones, like completely renovating your home, or minor events like adding an alarm system, your insurer should be the first to know,” he says.