During these challenging economic times experienced during the South African pandemic, any news about saving money is good news. So, let’s find out how to get the best deal on car insurance in 2022.1
Understanding car insurance1
Once we know how insurers factor in pricing, we’ll discover how to minimise monthly premiums. Please note that these are general insights into South African car insurance companies and may not refer to any particular car insurance company. Please get in touch with an insurer directly to learn more about how they price their car insurance.
Stay insured1
You may not use your car that much and may be tempted to cancel your car insurance. But according to the Businesstech article1, breaking your insurance cycle could affect your premiums. A car insurance company may think you insure your vehicle when you plan on doing something risky if your car has intermittent insurance cover. Continual car insurance cover allows the insurer to better understand your driver profile over time, positively affecting your premiums.
Buying car insurance for an old car1
Cover your old car with third-party car insurance, which is considerably cheaper than comprehensive car insurance.
Buy car insurance online1
Buying car insurance via a broker will be more expensive than buying online due to the broker’s commission. Online insurers provide automated computerised systems which cut out all the traditional administrative costs.
What if an insurer offers bonuses? 1
Many insurers offer clients bonuses for not claiming for some time. But this could be because the insurer loads the premiums to pay out bonuses from the excess charged. According to the Businesstech article1, those companies who don’t pay out bonuses usually charge lower premiums.
Does frequent claiming affect my premium? 1
Yes, this is true. Suppose you avoid claiming for every little bump or scratch. In that case, your claim record will encourage the insurer to offer lower premiums in future. In any case, having to pay excess every time you claim may not be worth your while.
Driving safely and within the law1
Your driver profile says it all to the insurer. If you have frequent accidents and brushes with the law, you have become a high-risk client. You leave the insurer no choice but to cover himself by raising the premiums. The converse is also true: lower the risk, and lower premiums.
Will it be high or low excess? 1
Excess is the extra amount you must pay the panel beater before you can have your car back. The higher your excess, the lower your car insurance premium could be, and vice versa. If you choose the high excess option, you need to ensure you’ll have that amount available at short notice should you be involved in an accident.
Disclaimer
Please note, this article can only be a source of information. Please consult a registered financial service provider for more information before buying any car insurance product.
You’ve read about some tips on how to aim for a low car insurance premium. Remember, it is a legal requirement to obtain comprehensive car insurance when buying a new car that is to be financed by a bank. This is where Prime South Africa might be of interest. Get affordable, comprehensive car insurance with fixed premiums* and reduce to zero excess*. Contact them and find out more. T and Cs apply.
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