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When is a good time to get car insurance?

Written by Prime Team
October 25, 2022

Like most South African motorists, you could be thinking of buying car insurance. However, perhaps you find yourself asking: when is a good time to buy cover for your vehicle? Well, the choice lies with you to buy car insurance of course. A good time to get cover could be after a recent change, such as a birthday. Premiums could change because of many different circumstances.^1,2

What do insurers use to determine your premium?

Some key factors insurance companies use to establish your premium are your age and driving profile. The entire insurance industry’s operation is risk-based, which means that the greater the risk, the higher the premium – and vice versa.

Your age affects your premium

Young people are still learning to drive and will most certainly lack driving experience. As such, to an insurer, a younger, inexperienced driver, for example, could present more of a risk than a 40-year-old driver who has been behind the wheel for 20 years.¹

Your driving profile

How risky has your driving behaviour been for the insurer over the last few years? You may have found that your defensive driving has resulted in low premiums. On the other hand, someone with an aggressive driving profile, involving many accidents over the years, could be paying considerably more for their premium. Consider changing your driving style and find out from your insurer how long it will take before you see a change in premium based on this change. Another option is to get online quotes from other reputable car insurance companies and compare.¹

How often should you get other quotes?

Some recommend that you should compare online quotes at least once a year. Although beware that low premiums do not necessarily mean you will get great cover. As an example, you could do some background checks on the company. Online reviews are a great way to see what customers may say about the company’s service, their products or premiums and even claim pay-outs.¹

Combine your insurance policies into one

By combining all your insurance policies with one company, you may have the leverage to negotiate a discounted premium. Not only can one company cover all your cars, but your home and other assets too. ^1,2

What else can influence your premium?

Besides being a homeowner, obtaining a degree, or getting married, may also produce lower premiums due to a more stable and less risky environment. ^1,2

Disclaimer

The above article is meant to give general information to help you understand the different characteristics of car insurance.

Are you considering switching your car insurance or buying it for the first time? This is where Prime South Africa can assist you with their affordable, car insurance with fixed premiums* and reduce-to-zero excess*. Discover more about Prime’s world-class expertise and all of Prime’s tailor-made, affordable car insurance to suit your needs. Ts and Cs apply.

As with all financial services products, first consult a certified financial advisor to make sure the product is right for you.

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