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Get your stuff revalued for accurate premiumsYOU bought a snazzy car radio in 1993 for R1 800, you insured it for its full value, and since then have conscientiously updated its insurance value every year. So when it's stolen you claim for the insured value of R2 100, right? Wrong. To your horror you discover that the same car radio now costs only R1 000. You've been over-insured and wasting money on excess premiums. The February edition of Santam's newsletter, Umbrella, draws attention to the fact that the price of electronic equipment has dropped over the past few years. Certain items, like car radios, cost much less than even a year ago. Umbrella uses the example of a Pioneer car radio that once cost about R1 700 and can now be bought for R980. The main reason for the price fall is that import tariffs have been reduced twice since 1994. The import duty on car radios has fallen from 80% to 20%, and the market has become more competitive. This means many people have been paying too much in insurance premiums. Your claim will be settled at the new, lower price. "The solution is for you to have your possessions revalued regularly - at least once a year - to make sure everything is insured for its correct replacement value. "That way you will not only receive full compensation for your losses, but ensure that you are paying the right premium for your insurance," says the newsletter.
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