The Cost of Staying Loyal to Your Insurer

Loyalty is great... but if you're doggedly sticking to the same insurer without checking if there are better options out there, your loyalty could be coming at a very high cost.

It's easy to be lazy when it comes to your insurance. According to Hippo.co.za research, just 30% of South Africans muster the energy to sit down and compare their insurance options once a year (most likely when they receive a renewal letter from their current insurer noting a premium increase). That leaves 70% who could be saving a stack of money... but aren't.

Are you a part of the majority? Maybe you've stuck with the first insurance policy you took out for your car, or perhaps you just went with the insurer your parents or friends use. Or you were sold on the savings message in an ad on TV from a popular insurer and didn't feel the need to compare after one quote.

And while that might be the path of least resistance, choosing convenience could prevent you from finding the best deal — and potentially cutting back on your monthly premiums. You won't know for sure until you compare.

Luckily, Hippo has simplified the process for you:

1. Complete a quote request on Hippo.co.za in 2 minutes
2. Compare multiple quotes from leading insurers side by side
3. Know that no mark-up is applied: what you see is what you get
4. Reduce your admin by having it all in one place, online

Still not convinced? Here are a few more ways that brand loyalty can cost you in the insurance game and why you should consider comparison as the answer!

You could be paying thousands more than you need to on Car Insurance

Are you? How would you know if you haven't compared quotes to see what else is out there? Independent researchers found that Hippo.co.za users could save up to R453.80* per month on Car Insurance just by using our comparison platform. That adds up to just shy of R6,000 per year, which is a significant saving in this cash-strapped economy.

Read more: The Easy Way to save R5,000 a Year

You could be over-insured, and not even know it

According to the Financial Sector Conduct Authority (FSCA), 42% of South Africans have a funeral policy. That's a lot of people, especially when you consider that only 19% of us have insurance policies for other things!

Ironically, Funeral Cover is a repeat offender when it comes to over-insurance. Look closer at the policies (and sometimes even the financial agreements) you have with the brands you're loyal to, and you may well find that you have multiple policies to cover the cost of a single funeral.

Your next move? Compare quotes and consolidate your cover. It could save you cash while getting you better or similar cover.

Don't: Rule out Medical Aid. Do: Reorganise it!

During the Covid-19 pandemic, many people had to make the tough decision to reconsider their Medical Aid cover, which was shown by the medical schemes market's contraction of 2.1% earlier this year when compared to 2019. Using Hippo.co.za's comparison tool, you can compare similar policies to see if you can get the same level of cover for a lower price or a different level of cover with the addition of Gap Cover to ensure your medical needs and any potential shortfalls are taken care of.

Alexia Graham from Hippo Advisory Services sums it up well. "Medical schemes don't offer loyalty discounts on premiums, so review your Medical Aid every year," she says. "This will help you understand how your benefits and premiums change when schemes revise their benefits annually. It also helps you compare the benefits you receive from your plan in comparison to others in the market. In this way, you ensure you get the best value for your money."

Don't just take our word for it. Here's what comparing can do for you!

Hippo.co.za users shared their experiences of comparing (and saving) via Feefo, Google Reviews and HelloPeter:

Simphiwe Mtembu: "It took less than 5 minutes for me to get new cover which is R2,000 less than my current car insurance."

Ajesh Ramluckan: "The service is awesome. I went from paying R2,100 to R900 a month."

Annelli D: "I received multiple quotes to compare effortlessly and was able to choose the best insurance package for my budget within seconds. Made my life easier!"

For similar benefits and savings, thanks to the power of comparing, request quotes (whether it's Car Insurance or Personal Loans) from South Africa's leading brands to weigh up side-by-side using Hippo.co.za.

This article is for informational purposes only and should not be construed as financial, legal or medical advice.
*Cumulative monthly savings over 12 months. Based on independent research by Kaufman Levin & Associates, 2021.