How often should you change your car insurance?

Car insurance companies are always changing and evolving to adapt to the current economic environment in order to become better than their competitor.

When changing car insurance, it would be up to the consumer to decide if they were going to benefit more with another insurer or if their current insurer could offer them something more.

A motorist might be looking for a regular rate change or a better insurance rate. Perhaps they have not had any traffic infringements in a long time or had an accident, meaning that their monthly premium should decrease as they are not high-risk. Older vehicles should also get lower car insurance premiums as that car has depreciated since it was purchased.

Nevertheless, when it comes to shopping for car insurance, it can be quite tedious work. But it might be worth it as you might be able to save money on your car insurance premium. We often leave our insurance policies as is, as we feel it will be too stressful and time-consuming to shop for other insurance deals. As consumers, we need to shift our way of thinking because we could be saving more money than we realise by making a change.

How often should one look at changing their car insurance?

It is recommended by some insurance experts to shop for new car insurance every six to twelve months. With car insurances companies continuously changing their offerings, it is always good to shop around for a good deal.

Driving history

Driving history is anything from how many traffic infringements you have had to car accidents. This is a huge factor when it comes to your car insurance premium.

You might have added an accident claim in the last few months, and this might have negatively affected your insurance premium, and it may be worth-while to shop around for a new insurance company that offers a better rate. Many insurance companies calculate their rates differently and track your track record differently, so with enough time that might give you a better rate with another insurance company.

Crime statistics

The crime rate statistics data is continuously being updated, and this includes all car-related crimes. When looking to change your car insurance, there could have been a spike in vehicle-related incidents with crime, and this could harm insurance rates.

With a constant fluctuation in car-related crimes, this will affect insurance companies on how they quote you in the future. If you drive a car that all of a sudden becomes a high-risk motor vehicle, your insurance premium can definitely go up when you request a new quote.

Where your home is located

Insurance companies do take into account where you live, and whether you live in a high-risk area or not. This will affect your insurance quote when they calculate it.

Another factor that some insurance companies consider when calculating your policy rate is the average age of the residents in your area and how much traffic goes through your neighbourhood. Further to this, if you have moved in the interim, this could also affect your insurance premium.

What car you drive

When you buy a new car, your insurance premium will change as you would need to request a completely new insurance quote for your vehicle. If you have not purchased a new car, it is worth-while investigating if you could be charged a lower premium, as an old car loses value. Why should you be paying more? Do not get stuck in a rate payment if you could be paying less.

The state of the economy

Insurance companies will always adapt when it comes to a changing economy. With Covid-19 hitting South African shores in March 2020, it has put a spotlight on the dwindling economy of South Africa. Fortunately, insurance companies will look at inflation, supply and demand, and anything else that needs to be factored in when calculating new rates for customers.

An easier way to change your car insurance

For some people, shopping around for new car insurance quotes can be a tedious task. Calling insurance company after insurance company can be quite an intimidating task for these individuals.

For these South Africans, the best way to shop around would be online. There are insurance comparing sites that will assist in selecting the right insurance at a click of a button. The documentation needed when changing insurers are available online on various sites. Always take into account your monthly budget when working out how much you can afford when it comes to buying car insurance. Shop around and don’t sign on the dotted line unless you understand entirely what the T’s and C’s are of your insurance policy.

Disclaimer

Please get advice from a certified financial adviser before you decide to purchase car insurance. This article is for informational purposes only.

Sources:

1. 1. How Often Should You Check Car Insurance Quotes?