Information About How Car Insurance Costs are Negotiated by Policyholders
February 16, 2017
Cutting Car Insurance Costs
One of the biggest cost savers in car insurance premiums is the annual depreciation on the value of vehicles. That helps cutting car insurance costs drastically.
Policyholders carry on paying their insurance premiums, little knowing that they probably qualify for reductions in their monthly payments.
Car insurances are due for renewal every 12 months after induction date and untold numbers of policyholders, who could be saving huge chunks of money, fail to review the value of their vehicles
Depreciated value = lower monthly premiums.
However, unless told otherwise, some insurance companies will keep policy premiums at the original value of the vehicle despite its increasing age as well as wear and tear.
Examples of depreciation
A 320i BMW purchased in 2009 would have cost R315 500.
Three years later the estimated market value of the vehicle was R245 900.
That 20%+ decrease in value three years later could save the policyholders an enormous amount of cash.
Other cost saving measures
In the “real” world business is business and what many motorists are unaware of is that they have the power to negotiate the cost of their monthly car insurance premiums.
The majority of insurance companies, as well as their brokers, are open to a little “arm twisting”.
Pay a higher excess
A trump card consumers can play to be given lower monthly premiums is to offer to pay a higher excess amount.
The double-edged sword, however, is that the policyholder must ensure that there will be sufficient funds to pay a higher excess amount in the event of a road accident.
Install security devices
- Vehicle tracking
Installing vehicle tracking devices will automatically qualify policyholders for lower monthly premiums.
- That includes Microdot Technology.
These two features enable a more satisfactory rate of recovery if vehicles are hijacked or stolen.
- Immobilisers and alarm systems
Lower premiums could also be negotiated if vehicles are fitted with alarm systems and immobilisers.
- Advanced Driving Courses
Some car insurance companies will reduce premiums for drivers who complete an Advanced Driving Course.
The argument in this regard is that the course reduces the chances of the policyholder being in a road accident as well as honing his/her driving skills.
- More cost-cutting tips
Also, policyholders must always inform their insurance companies should they change their place of residence.
Moving from one suburb or area to another could affect monthly premiums.
For example, living in a security complex or low crime area could provide substantial savings on monthly premiums.
Conclusion about cutting car insurance costs
Following these cost-cutting tips puts an end to the big consumer complaint that they must pay increased car insurance premiums despite the fact that the value of their vehicles depreciates on an annual basis.
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All info was correct at time of publishing