How could I get discounts on my car insurance premium in 2020?

In these financially tough times, any discount on car insurance sounds like great news. Let’s find out how you could potentially discount your monthly car insurance premium in South Africa.

Don’t wait to ask for discounts 1

The insurer won’t necessarily inform you of all the discounts available at any time. Don’t be shy, ask and find out. You don’t have to wait until your policy has to be renewed, car insurers are after all the business they can get and they know that discounts are attractive to customers during this time. Below is a checklist you can go through with your insurer to get a discount on your car insurance premium.

Tips to help reduce your premium – your driver profile 1

Insurance is based on risk. The lower the risk you are to the insurer, the less the premium you need to pay may be. Driver profiles are based on your driving experience over the years. If you have submitted very few or no car insurance claims over the last few years, then your driver profile likely looks great, and you will have good reason to motivate for a discount on your premium.

Are you driving small distances to work? 1

Based on statistics, the insurer may state that the smaller the distance you travel every day, the less chance of you being involved in an accident. Hence, a discount could be possible, compared to those motorists who travel long distances every day.

Calculating the car insurance premium 1

You can ask the insurer how your car insurance premium is calculated. This could be essential to understand as it will show you where possible discounts can be granted. Did you know that, depending on your insurer, going on a defensive driving course could earn you a reasonable discount?

Other factors that can lead to discounts 1

Loyalty is generally rewarded in society, and this also applies to insurance companies. The more cars you insure under one policy, the more compelling the reason for a discount.

Make sure where the discount is applied 1

When insurers promote a discount, find out precisely what is being discounted – it may only affect a small fraction of your premium.

How safe and secure is your car? 1

If your car is new, has a Euro NCAP rating, and is parked in a secure place at night, you may well be eligible for a discount.

Discounts have a limit 1

Make sure what the discount limit is by any insurer – some will not exceed 25%.

Go for it 1

Disclaimer

This article should be seen only as information; seeing as buying car insurance is not a straightforward matter. Should you like to purchase a car insurance product, a certified, financial advisor will be able to help you with sound professional advice.

Sources:

1. 1. Auto insurance discounts to ask for: complete guide