On average there are 12 million cars traveling on South Africa’s roads and of the 12 million cars on our roads, roughly 65 -70% of them are uninsured, according to the Automobile Association of South Africa (AA). That is truly alarming as not having car insurance can be financially crippling. If you consider the amount of high-jacking’s and car accidents that take place on our roads daily vises the premium paid for car insurance, having car insurance seems like a no brainer.
As the prices of vehicles increase, so do the premiums on car insurance, and it is unlikely that they will be coming down soon. The good news is that there are a few things you can do to lower your car insurance premium and reduce the burden on your wallet.Insuring multiple drivers may save money In most cases obtaining a quote for insurance on a single car will work out more expensive than obtaining a quote for several vehicles.
Insurance companies often offer bulk discounts if it means a client will be bringing in more business. Generally speaking, the multiple drivers must all live at the same residence or be related.
1. Insure your vehicle for the correct value
If you drive an older vehicle, make sure you are not over-insuring your vehicle. Make sure your insurer takes into consideration the depreciation value.
2. Be mindful to drive well
This one goes without saying, be safe, and be alert. We live in an era of increasing in-car distractions, which could lead to accidents. The more mindful you are, the more incidents you’ll avoid which will impact your driving record and could help to lower your insurance premium.
3. Increase your security
As your premium is based on your risk profile, and your risk profile is based on several variables such as where you live, where your vehicle is parked at night, the security around your property, etc, you could reduce your premium by installing additional security features to your cars such as a tracking device or alarm.
4. Take a defensive driving course
At times insurance companies provide discounts for customers who have completed an approved
defensive driving course. The reason for this is that these drivers now have the required skills to prevent
car accidents which will lead to a better driving record.
5. Shop around
If your annual premium has gone up considerably, consider shopping around and obtaining quotes from other insurance companies. Remember to make sure you always compare apples with apples to make sure you are getting the best price with the best insurance possible.
6. Review your cover regularly
You might be in a position now that you don’t need a fully comprehensive cover on your older, second
vehicle, and can consider changing the cover to limited cover.
7. Increase your excess
You could lower your premium by reducing the excess you pay when you claim. In the perfect world, you want to pay the lowest excess with the lowest premium possible, however, this is not always possible as a lower premium often results in high excess. By increasing your excess you could lower your premium, making car insurance more affordable.
8. Consider combining your policies
By combining your car and home insurance into one policy you could qualify for a discount.
1. Don’t claim unnecessarily
Keep your car insurance for major incidents as opposed to every little bump and scratch that you could actually afford to cover from your own pocket. When you claim for every little nick or scratch, your insurer will increase your premium as you will be considered a high-risk client. If you’re driving through the hustle and bustle of South African roads, car insurance is a necessity.
It helps with claims for damages to your car and other affected parties. Going without car insurance is a risk no-one should take Although it can end up being a costly expense, many factors influence the premium charged and many
ways in which we can decrease our premium. Make sure car insurance gets a spot in your budget.