Car insurance can take a big toll on your households budget, running into hundreds and thousands of rands each year. But there are plenty of ways to cut costs on your car insurance. Here are some of Likemoney’s top suggestions on how to lower car insurance costs…
Boosting your security and preventing thieves has two benefits. First of all you will be less likely to make a claim, that is always a hassle and it can erode any no claims bonus you’ve accumulated. Secondly theres a possibility that you can secure a discount from your insurer. By fitting a tracking device you can lower your premium.
Park In Safe Areas:
Still on topic of security, remember that where you park your vehicle can affect your car insurance premiums. If you can park in a garage or even a driveway you will pay less than if you park in the street. This is due to reduced risk.
Keep your kilometers down:
Car insurance companies view more kilometers as higher risk. The more kilometers you drive, the more likely you are to have an accident. Thats a fact. The higher your kilometers the higher your car insurance premiums. The thing is… most of use drive the amount of kilometers we drive so reducing our kilometers by a meaningful number isn’t really an option. But it’s important to put a realistic figure on the car insurance proposal form. Many people stick 15,000 or 20,000 kilometers a year down without too much thought even though they could be doing many fewer.
Increase Your Voluntary Excess:
All car insurance policies have an “excess” which is the amount you pay back towards any claim you make. For example you might have an excess of R2000, this means you would receive R3000 from the insurer from towards a R5000 claim. The excess consists of a mandatory and a voluntary portion. You have the ability to increase (or decrease) the voluntary one – increasing it will reduce your premium, and vice versa.
Put A “Named Driver” On Your Policy:
If you add another person to your policy, chances are, your premiums will be reduced. If you do this, make sure the person who does most of the driving is under the “main driver”.
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