Every year there is a frightening number of vehicle accidents, thefts and hijackings, which puts the South African motorist at a financial risk. This is why it’s important to have car insurance and even though it is not required by law, having car insurance can save you a bundle if anything were to happen to you and your vehicle.
With finances being tight in South Africa, you might be considering cutting costs. Here are our top tips to lower your car insurance premium.
Insuring at the Right Price
We tend to leave our insurance products and rarely revisit them to see if we can get a lower premium. Vehicles become older, which means they are worth less, what you originally insured your vehicle for may now be too much. Make sure your vehicle is insured for the correct value.
Make Sure You Haven’t Duplicated Coverage
Insurance companies offer a lot of extras as they are all competing for your business. It can then be easy to duplicate coverage without knowing it and you may be paying extra. For instance, your car insurance may offer free roadside assistance, which means you don’t need to opt-in for this coverage on your home insurance.
Have You Got Enough Security?
Your risk profile will determine the premium you will pay and it is based on a variety of factors like where you live, the type of car you drive and the security measures you have in place.
If you have fitted your vehicle with extra security like an alarm or a tracking device then you could reduce your car insurance premium.
This is also true of your home insurance, so if you have moved to a safer neighbourhood or installed an alarm, you could save here as well.
Small Claims Aren’t Worth It
Your insurance should be kept for the big things that could result in massive losses. You should avoid claiming for small events that you can pay for yourself. Claiming for every little scratch will raise your risk profile and in return, you will pay higher premiums.
The Higher the Excess, The Less The Premium
The excess is what you will need to pay when you claim. You can save money on your monthly insurance premium by increasing your excess. Of course, you want to pay the lowest excess, but by taking the lowest it could make your premium to expensive. You then need to find a balance where your premium is at a reasonable rate and your excess isn’t too high, so if you do need to make a claim, you can cover the excess still.
Take 2 and Make it 1
You can save money on your car insurance premium by combining it with home contents insurance or building insurance from the same provider. Insurance providers will usually offer a discount when you have more than one policy with them.
Also, keep in mind that if you have more than one car, you could qualify for a discount if you insure your cars with the same provider.
Time to Shop
There are numerous car insurance companies and they all offer some type of incentive if you join them, but you need to look further than this and shop around for the best deal. You need to find the car insurance that is friendly on your pocket and offers you the cover you need.
Take your time and compare different offerings from different providers and don’t feel pressured into signing unless you are completely sure.
Review Your Cover
Over time our insurance needs may change, which means you should review your insurance products regularly. For example, you may not need full comprehensive insurance for an older vehicle anymore and might decide that you can reduce the cover on this, which will save you money.
Update Your Details
You need to keep your details up to date with your insurance provider. For instance, if you now park your car in a more secure area at night or if you only use your car for private use and are no longer using it for business, let your insurer know these details as it could save you money.
It is not required by law to have car insurance, but you really should have it as it could save you financially if anything were to happen.
It is possible to save on your car insurance and there are plenty of car insurance companies offering great deals, so take a look and start saving on your premium.