Car insurance is something every car owner needs in order to protect themselves from the high cost of potential vehicle damage, loss and theft. Did you know that almost 66% of all vehicles on our roads are uninsured?
According to insurance.co.za, banks and financial institutions require your car to be comprehensively insured when purchasing a car on finance. If you haven’t, and your car is written off in an accident, you’ll still have to pay the remainder of the instalments while being left without a car.
Now that you know the importance of insuring your vehicle, here’s how you can find something affordable:
1. Shop around
Compare car-insurance quotes from at least three companies or get a broker to do it for you.
2. Increase your car-insurance excess
By increasing the excess amount on your vehicle, most insurers will give you a discount on your car-insurance premium. Be sure that you can afford to pay the excess if you have to claim, though.
3. Don’t use your car for business purposes
If possible, insure your vehicle for private purposes only. Business use will result in a higher monthly premium. Most car-insurance companies will still give you a reduced premium if you only need it for occasional business use.
4. Drive safely
If you’re not involved in any car accidents, you’ll pay a reduced premium. After each claim-free year of insurance, you might qualify for a discount at your current insurer. If not, you could get a better premium at another insurance company.
5. Buy a low-risk vehicle
High-performance vehicles are usually seen as a higher risk by insurance companies (especially if you’re under 25). The replacement cost of parts is also more expensive.
6. Take into account where you live
If you live in a high-risk suburb or in a city, you will pay a higher premium on your car insurance because of the risk of your vehicle being stolen or hijacked.
7. Don’t park in the street, if possible
A vehicle parked in the street is at higher risk of being stolen than one parked in a locked garage. Some insurance companies will give you a discount if your vehicle is parked in a garage or behind locked gates at night.
8. Upgrade security measures
Install an anti-hijack device, gear lock or tracking device in your car. If your level of security is higher than the requirement of the insurance company, you’ll get a discount.
9. Nominate drivers
If fewer people will be driving your car, it may result in a lower monthly premium. This way it’s easier for the insurance company to calculate their risk.
10. Negotiate
Most insurers are flexible with their premiums. If you’re not entirely satisfied with the quote, ask for a discount on the car insurance. Whether you live in Johannesburg, Pretoria, Cape Town, Bloemfontein, Durban or Putsonderwater, you can save on insurance premiums.
From: WOW
PHOTO: iStock/Georgijevic
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