How to save money on car insurance

The South African pandemic has caused considerable financial hardship, and so if we can save money on car insurance, all the better. Read on and discover how to do that.1

Provide the correct mileage figures1

It is simple – the more you drive, the greater the risk of a collision. However, honesty is the best policy, and it’s best to not over – or under-estimate the mileage you submit to your insurer, says confused.com1.

How secure is your car? 1

Having extra security features on your car will help reduce the risk of theft and thus might lower your premium.1 Find out from your insurer which items could lower your premium – it could be the installation of an immobiliser or using a steering lock. Parking your car at a secure workplace and at a secure home at night.

What exactly does your car cover? 1

According to Confused.com1, you need to ensure that the distance you travel with your car agrees with what is written in your policy. There’s no point for you to still pay for the risk of commuting from your home to another city when you have retired. Now you only use the car for shopping and a holiday trip once a year. The opposite is also true, when you were working from home, but are now regularly travelling far to the office every day. Be honest to avoid any difficulties at claim time.

When last have you checked your car insurance policy? 1

After taking out a car insurance policy, we tend to forget which items were stipulated for extra cover. Time changes circumstances, and we should delete from our policy those items that are no longer relevant, thus lowering the premium.

Increasing your excess amount1

Regarding car insurance excess, the higher the excess, the lower the premium, with the converse, also being true. The challenge with choosing the high excess option is that we must have cash reserves available in an accident. The panel beater may not release your repaired car until you have paid the excess. You can make adjustments to the excess amount if you are over 35 years old with Prime South Africa.

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.

Sources:

1. 1. How to get cheap car insurance: our tips for a cheaper car insurance premium