June 19, 2021
Many motorists have been financially impacted during this South African pandemic, and so it’s always good news to discover how they can get the best insurance deal. Read on and find out more about the tips to ensure that you get the best insurance deal.1
Car insurance is based on the amount of risk a driver poses on the road – the greater the risk, the higher the premium. That is why it’s important to drive defensively to establish a great driving record with the insurer.
The pricier the car, the higher the premium. Spare parts of some luxury models are exorbitantly expensive, and the insurer must factor this into the premium. Remember that premiums for old cars are also higher because of the greater risk of them breaking down.
Older cars never came with alarm systems which increases the risk of theft, and thus raises the premium. Installing an alarm system could lower the premium.
Parking your car at night at your house with only a weak fence and gate is far riskier compared to parking it behind a high wall with electric fencing and a strong gate. Lower the risk, and the premium will be lower. The same applies when parking at your work – ensure your car is secure.
Be alert to discounts offered by insurers from time to time. In addition, contact them yourself, confirming any discounts available to you.
Adding your wife’s and son’s cars to your policy will mean increased business for the insurer and an overall discount for you. The wife’s and son’s driver profiles must be acceptable to the insurer, as otherwise, risk may increase with a higher premium. A young age with little driving experience would increase the risk.
Car insurance policies need to be tailor-made to meet your needs. For instance, you have just started working and you can only afford an old car, and a small premium. If you don’t drive long distances, you could enquire about third-party car insurance, which at least covers the third party’s car.
A voluntary excess is the amount of cash you must pay towards the repair costs of your vehicle after being in an accident. A panel beater will only release your car once you have paid for this. The higher the voluntary excess, the lower your premium. Ensure that cash for the excess is immediately available after an accident because you need to retrieve your car from the panel beater.
Car insurance is often complex and this article must only be seen as information. That is also why you must first get professional advice from a certified financial advisor before you buy any car insurance.
This article describes how you could achieve paying lower premiums, something that is especially fitting for a difficult time like this in South Africa. PMD’s affordable car insurance products also cater for this need, so why not contact them for further information?