Car Insurance is getting more and more essential these days for people living in South Africa. Not only is the crime rate through the roof, but the cost to do simple repairs to a vehicle is getting ridiculous. By paying your car insurance policy on a monthly basis, you can at least cover these sudden unexpected costs, should they occur.

Why Should I Compare Rates Before Purchasing a Policy?

Not only will you discover new insurers when comparing quotes, but you will also find companies that offer more benefits or cheaper monthly rates. There is always something you are not aware of, that you may discover when comparing a few online quotes.

What will Influence My Car Insurance Premiums and the Quotes I Receive?

Numerous elements may have an impact on the monthly premiums you pay for your car insurance. Your insurance company may ask you several questions while producing your quote – some will influence your premium and some will not. Below are a few things that you can control that may have an impact on your premiums.

Type of Cover

The three main types of policies are:

Comprehensive car insurance – By having this type of policy, your own car will be covered in case of accident, fire and theft. Third parties are also usually covered.
Third party, fire & theft – This policy will only protect a third party or their property, as well as damage to your own vehicle due to fire or theft. Damage to your own vehicle due to an accident will not be covered.
Third party only – This will only protect a third party’s property or their medical bills. Damage to your own vehicle is not covered.

There are also some optional extras you can include in your insurance policy. These can include rim/mag cover, sound cover, windshield cover, roadside assistance, renting of a vehicle when yours is damaged, towing of vehicles and, depending on your insurer, a few others.

Location

The place where you live has a huge impact on the premiums you pay. The possibility of your vehicle being hijacked or stolen is an essential issue for the insurance provider. Bigger cities typically deal with higher levels of danger of burglary and for that reason tend to be more costly than other areas.

Excess

By paying a higher excess on each claim, you can decrease your vehicle coverage premiums. Since you are reducing the liability of the insurance provider and for that reason, they can provide you lower premiums in return.

Type of Vehicle

The more affordable and slower your automobile is, the lower your premiums will likely be. If you are aiming to get a brand-new sports car, ensure you consider the expense of insurance coverage– you may have the ability to purchase the vehicle, but will you be able to afford driving it?

Settling policies

By insuring a variety of vehicles with the same company, or by getting house and life insurance at the same company, you might have the ability to get a ‘bulk buy’ discount rate.

Parking

Where you park your motor vehicle overnight is a big determining factor when getting a policy. You ought to be provided a lower premium if you leave it in the garage rather than on the street.

Mileage

You can manage your insurance coverage premiums by limiting your yearly mileage. Be mindful that sometimes if you go beyond the restricted number of miles, you’ll then end up being uninsured!

Security

Security gadgets like tracking devices, immobilizers or alarm systems will ensure you are less of a risk to the insurer, therefore lowering your premiums as well.

No Claim Reward

Many companies offer a cashback reward if you do not claim after a certain amount of years. By doing this, you will not only have lower premiums, but you can get something back in the long run.

Your Sex

Ladies are statistically less likely to have a mishap and, if they do, it’s less likely to be major. Because of this, women take advantage of lower premiums. If you are married, you may want to consider having the female as the primary motorist and the male as the 2nd driver, as this might affect your premiums as well.

Advanced Driving Abilities

Many companies offer lower premiums to people who went for an advanced driving course. If this is something your insurer does, it might be a good investment to go for a course like this.

Variables NOT Within Your Control

Your Age

The older you are, the more driving experience you have and the less likely you are to make a claim. As a result, insurance companies charge lower premiums for more mature motorists.

Your Occupation

Depending on the type of career you have, you may end up driving more. Statistics also show that people within specific occupations tend to be more aggressive drivers and some insurers use this factor to determine your rates.

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