Nobody enjoys a price increase. Petrol, medical aid, gym memberships… They always seem to be going up. And insurance premiums are no different. But before your inner Karen comes out and asks to speak to the manager, let’s unpack the reasons behind premium increases and what you can do about them.
RELATED: HOW INSURANCE COMPANIES CALCULATE YOUR PREMIUMS
Common Reasons for Insurance Premium Increases
Inflation & Rising Costs
Like groceries and petrol, repairs, vet treatments, and labour costs increase over time. If mechanics, vets, or spare parts become more expensive, insurers adjust premiums to keep up.
Increased Claims in Your Area
If your neighbourhood has more thefts or accidents, insurers may see it as a higher risk, influencing your premiums.
Changes in Your Circumstances
Moving to a new area, upgrading to a more expensive car, or adding a new pet to your policy can impact on your premium.
Market Trends & Regulations
Economic shifts, supply chain issues, and new regulations can also affect how premiums are structured.
How to Keep Your Premiums Manageable
Keep Your Claims History Clean
The fewer claims you make, the less risky you appear to insurers — helping to keep your premiums steady.
Choose the Right Plan
Pick an insurance plan that matches your needs. Being underinsured can leave you exposed, but overinsuring can mean paying for cover you don’t need.
Increase Your Excess
A higher excess means lower monthly premiums, but only if you can afford the excess in the event of a claim.
RELATED: CLAIMS 101: UNDERSTANDING POLICY WORDING
Save with Insurance
The bottom line? Insurance premiums aren’t random price hikes. They reflect real-world costs and risks. But by making smart choices, such as choosing the right insurance company (it’s us, dotsure.co.za), you can help keep your premiums in check while staying covered when you need it most.
Are you looking for affordable car, pet, home, or business insurance? Visit dotsure.co.za today!