Home

9 Ways to save on car insurance premiums:

1.   Shop around:

Prices vary from company to company, so it pays to shop around. Get at least three car insurance quotes. You can call car insurance companies directly or access information on the Internet. Your best bet will be a specialist car insurance broker.

You buy car insurance to protect you financially and provide peace of mind. It's important to pick a company that is financially stable.

Get quotes from different types of  car insurance companies. Some sell through brokers. Some sell through independent brokers who offer policies from several  car insurance companies. Brokers can offer products from different insurance companies, where direct insurance companies can only offer one product

Don't shop price alone. Ask friends and relatives for their recommendations. . Pick an broker that specialise in car insurance and that takes the time to answer your questions.

2. Before You Buy a Car, Compare Insurance Costs

Before you buy a new or used car, check into insurance costs. Car insurance premiums are based in part on the value of the car,  the cost to repair it, its overall safety record, and the likelihood of theft. Many insurance companies offer discounts for features that reduce the risk of injuries or theft eg. anti-theft devices like tracking devices. a Good reputable car insurance broker who has been in the business for a few years can usually tell you offhand which vehicles are a bigger risk and attracts a higher car insurance premium.

3. Ask for Higher Excesses

Excesses is the first part of a claim that you pay before your insurance policy kicks in. By requesting higher excesses, you can lower your insurance premium substantially. For example, increasing your excess from R1 500 to R 2 500 could reduce your comprehensive cover cost by 15 to 30 percent. Going to a an additional R 2 000 excess can save you 40 percent or more. Before choosing a higher excess, be sure you have enough money set aside to pay it if you have a claim.

4. Reduce Coverage on Older Cars

Consider dropping comprehensive insurance cover on older cars. If your car is worth less than 10 times the premium, paying the insurance premium may not be cost effective.  Phone an official car dealership to find out what the value of your vehicle is. Most insurance brokers have access to the Auto Dealers Guide. This is a monthly publication that indicates what the resale and trade-in values of vehicles is. The Auto Dealers Guide is used by car insurance companies to settles claims.

5. Buy your Homeowners and Car insurance from the Same Insurer

Most car insurance companies will give you a discount in the car insurance rate if you combine it with housecontents and/or building insurance. You may also get a reduction if you have more than one vehicle insured with the same insurance company. Some insurance companies reduce the rates for long-time customers. But it still makes sense to shop around! You may save money buying from different insurance companies !!!! This is the rule, but there is exceptions.

6. Maintain a Good Claims Record

Establishing a low claim history can cut your insurance costs. Insurers are increasingly using longterm trackrecord information to price car insurance policies.                                            Don't make unnecessary small claims. You will loose your no-claim discount and will pay more for your car insurance in the long run.

7. Take Advantage of Low Mileage Discounts

Some  car insurance companies has start to offer discounts to motorists who drive a lower than average number of kilometers a year. Low mileage discounts can also apply to drivers who car pool to work. This is a fairly new concept in car insurance in South Africa.                      It is not readily available in the general car insurance market and it is most probably not suited  for the needs of the average car owner.

8. Ask about Group Insurance

Some companies offer reductions to employees who get car insurance through a group plan   from their employers, through professional, business and alumni groups, or other associations. Ask your employer and inquire with groups or clubs you are a member of to see if this is possible. Group Insurance is usually offered by bigger companies where the employees use  their own vehicles for income generating purposes.

9. Seek Out Other Discounts

Some car insurance companies offer  really special discounts to policyholders who have not had any accidents and/or claims ( and can proof it !!) for a number of years. You may also get a discount if you take a defensive or so-called advance driving course.   Car insurance companies in South Africa are not so willing to give discount for advance car driving courses.

Home