Tips on how to save on your car insurance premiums
December 8, 2017
Spiralling inflation and a depreciating ZAR is forcing many South Africans to crunch the numbers. They look for ways to cut financial corners. Here are some tips on how to save on insurance.
Top tips on car insurance
One of the big budget items on monthly bills is vehicle insurance and in this article, we take a look at cost-cutting tips.
- Insure the vehicle for market value. The market value of a vehicle is generally lower than retail value. Private sales relate to market value which takes a number of variables into account. These include mileage, condition, and service history. Make a call to your insurer each year to adjust your premium in line with the depreciating market value of your vehicle.
- Older model vehicles that are not under finance can be insured for Third Party only (the cheapest) or Third Party, Fire and Theft.
- Installing a tracking device reduces the premium.
- Reductions are also available if the vehicle is parked in a lock-up garage, a secure basement or a parking ground with security.
- Combining vehicle insurance with household items can also offer reduced monthly premiums.
- Maintain a good payment history to qualify for lower rates.
More Tips for You
- Provide your insurance company with accurate information regarding the regular driver of the vehicle to qualify for premium benefits or to avoid nasty premium hikes in the event of an accident.
- Try to maintain a long-term relationship with one insurance company as chopping and changing affects your credibility and ups your premium payments.
- Reduce monthly premiums by opting to pay a higher excess amount. However, should you be in an accident then repair costs will be much heftier.
- Avoid claiming too often. High claim histories result in heftier premiums. Rather pay for smaller damages, such as chips, scratches and parking lot dents, out of your own pocket.
- We recommend updating your personal details as it could help you lower your premium payments. For example, if you have moved to a safer suburb with better security features, your insurance premium will reduce. Furthermore, you should keep your insurance company up-to-date with your details to maintain the validity of your policy.
- Another increasingly popular cost-cutting method is to undergo a certified advanced driving course. Motorists who pass this examination more than likely will qualify for a reduction in their monthly premiums because they are regarded as a lower accident risk.
Finally, there are a few other factors to take into consideration when looking for cost-cutting solutions.
Think twice about buying that nice sporty vehicle. Fast cars attract heady insurance price tags.
Younger drivers pay more for their insurance so they are advised to drive a modest car to be able to afford their insurance costs.
Think twice before cancelling an existing car insurance policy in an attempt to save monthly overheads. That financial outlay could pale into insignificance in comparison to the cost of being involved in an accident.
If you are looking to buy insurance, shop around and ALWAYS compare quotes. Contact either a broker or research different options on the internet to ensure that you obtain the best possible price for the product that meets your needs.
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All info was correct at time of publishing