February 12, 2021
South Africa has been under various lockdown levels for almost a year, which has unfortunately had a severe impact on most people’s finances. That is why reducing costs will appeal to most South Africans. Let’s find out how downsizing your car can save you money on car insurance and other expenses. Please be aware that this article is only providing information and not any financial advice.
The size of your car can depend on the stage of your life and your needs. For instance, if you have 3 young children, you will require a larger car, especially when you go on holiday. If you and your partner are both retired, the need for a large car may not be necessary anymore. If parking is a problem where you live and work, having a large car may be problematic as well.
You may not want to replace a large car with one that is too small, having a boot looking like a glove compartment is not ideal.
In these pressing financial times, it may be necessary to drive a smaller car that is cheaper to maintain and run. Fuel economy, car insurance and maintenance are important factors to consider.
The more expensive a car, the higher the car insurance premium is likely to be. Choosing an economical petrol hatchback or a small diesel car could suit your budget better. If you can, select a vehicle that is quite new, and still under warranty. Ideally, choosing a car with a complete service history speaks of a well-kept car and has a lesser chance of needing expensive repairs.
When it comes down to your budget, is it necessary to continue driving a powerful car? Yes, it can be exhilarating, but is it worth all those extra costs?
It’s a myth that small cars are less safe than large ones. It all depends on the NCAP safety features built into a particular make and model car. Even though larger cars have larger crumple zones, smaller cars can still achieve the same NCAP safety ratings. For instance, compare the latest Audi A1 with the Renault Clio.
Before rushing to sell or trade-in your large car for a smaller car, make sure you can afford this. If your large vehicle is still new, its high value should offset any losses in changing.
Find out which cars enjoy lower insurance premiums. Some insurers charge high premiums for luxury cars that are expensive to repair. Used vehicles such as the Volkswagen Golf and the 2009 Volkswagen Polo might also enjoy lower premiums because of their age. But take care – some models are easier to steal than others therefore their premiums will be more expensive, despite their age.
This article is only information because buying car insurance is not straightforward. Please contact a certified, financial advisor for professional advice if you are interested in buying car insurance.
If you plan to downsize your car, why not contact PMD for more information on affordable car insurance with unique benefits like fixed premiums.* T’s and C’s apply.
May 12, 2022