Ways To Reduce Car Insurance Premiums
November 30, 2018
You may be wondering if it is worth continuing your ever-rising car insurance premiums. After all, you don’t seem to be getting any tangible benefits from it. Don’t worry; there are ways to reduce car insurance premiums
Instead of looking for the exit door, maybe you should try a new approach. How about finding ways to reduce car insurance premiums?
Here are some ways you could begin paying less:
Valuing the Vehicle
The value of your vehicle started tumbling the moment you took it out of the showroom. If you’ve been driving it for a few years, it’s now probably worth thousands of Rand less than its original price.
This drop in value needs to be reflected in your premiums. But the only way to do that is by getting your car valued before renewing your policy at the end of every year.
If you fail to do this, your insurer will keep charging you the same premium they did when you started the policy, even if the car has racked up hundreds of thousands of miles on the odometer.
Every year your car is on the road, its value goes down by a certain percentage. Some models like the BMW 320i have gone depreciated by as much as R70,000 in just three years.
If you do the math, you could pay as much as 20% less on your premiums if you owned such a vehicle and valued it every year before policy renewal.
More Ways To Reduce Car Insurance Premiums
Insurance is a game of risk; the higher the risk, the more expensive it is. So you can make your insurance cost less by reducing your level of risk on the road.
Driving skills: If you prove that you are a safe, competent driver by taking and passing an advanced driving course, some insurers will lower your premiums.
It’s because they will evaluate you as less likely to get involved in an accident. Lower chances of an accident mean fewer chances of you making a claim.
Safety features: Most car insurance providers will charge higher premiums if your vehicle is without anti-theft features such an alarm system and tracking device.
Install these features and let your insurer know. Fitting them will not only lower your insurance cost, but it also will up the value of your car.
Some auto insurers will require you to meet a percentage of the payout when you lodge a claim; This is excess.
Usually, insurance companies are flexible regarding the amount of excess you need to pay after an event. If you would like to pay lower premiums, you can agree with them to pay a higher excess.
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All info was correct at time of publishing