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Is Car Insurance Really Necessary?

Car owners in South Africa are encouraged to have Car Insurance, but there is no law that obliges you. If your budget is tight, it might be tempting to cancel your comprehensive car insurance. This leaves you at risk for big financial and health implications when things go wrong. Statistically, accidents and car theft are common in South Africa. We cannot afford NOT to have car insurance, but we can find ways to pay less for it.

Can I Legally Pay Less for Car Insurance?

Yes, you can! There are legal ways to lower your Car Insurance premiums. No bribes or fraudulence necessary. By understanding how insurers determine your monthly premium, you can find ways to pay less and be savvy.

How Do Insurers Determine Car Insurance Premium Rates?

Car Insurance providers look at your risk profile and your car to decide what your premiums will be. Things that are considered risks will impact your premium. If you have a cheaper car, you may pay less unless you also have a history of bad driving. Even your age and the colour of your car can play a role. To find ways to save, start by understanding your own risk profile and how your car impacts premiums.

Some elements in your risk profile can’t be influenced, like your age or your accident history. Other elements can be addressed, like buying a specific colour car, a brand that is considered lower risk, or taking advanced driving lessons.

Attending to These Risks Can Help You Pay Less for Car Insurance

Your Driving Style

To prove you’re a safer driver, take an advanced driving course. Insurance Providers see drivers who have taken advanced driving lessons as a lower risk.

How You Drive

The frequency of your drives can influence your premium. If your job means you’re on the road the whole day, you may pay more than someone who drives less. Where you drive, how far you drive, and at what times you drive also impact your car insurance payments. If you drive in peak traffic, it is seen as a bigger risk. If you drive at night, it is seen as a bigger risk, and if you travel far daily or on dangerous roads in dangerous areas, it is seen as a greater risk.

Consider other means of transport to avoid dangerous roads and peak traffic. You can check out annual crime reports and annual road accident reports to figure out which roads and areas are bigger risks for you.

Your Driving History

Do you have a list of traffic offences piling up? Speeding tickets? Have you been in an accident? These all contribute to your driving history risks. Trying to hide the facts about your driving history will not benefit you, as previous claims are always kept on record. It’s best to be honest with your insurance provider and to take steps to lower your risks in the future. Claim less, if possible, and drive cautiously and safely (in other words don’t speed or drink and drive).

Other Ways to Save on Your Car Insurance Premium

Age Isn’t Just A Number

If you’re a young driver, Car Insurance providers see it is as a bigger risk because you are inexperienced. To save, find out if you can go on your parents’ insurance the first time you buy a car. Some insurance providers can accommodate other drivers on a person’s policy.

Be Choosy About Brand

We don’t recommend brand snobbery, but brand contributes to your premium. Car Insurance providers use statistics and collected data to determine which Car Brands are safer and which are higher risks. You may end up paying less for brands that have parts readily available and more service centres. Brands that get stolen more will cost you more each month.

Your Car Colour Matters

Insurance Providers have turned risk profiling into an art. With a lot of research under the belt, they determine which car colours are considered lower or higher risk. And yes, your car’s colour can mean a lower or higher premium! It’s not just about the psychological profiling, it’s also about practicality. A car in a rare colour costs more to fix than a car in a standard colour.

Expensive Car, Expensive Premium

Fancy cars are going to cost you more per month for various reasons. You’ll pay more for a BMW 7 Series than a Chevrolet Spark, for example. Sports cars are also seen as bigger risks than family vans, so the car you buy greatly influences your premiums. To save, choose a practical car in a common colour that isn’t too pricey.

Pay Your Insurance Yearly

If you can afford to, pay yearly instead of monthly to save on interest.

Update Your Info Often

Let your insurance provider know about any changes in your life. By doing this, you show them you are reliable and honest. You could also save money. If you get a new job where parking is more secure, for example, your premium might be lowered because your risk is lowered. Sometimes you may jump to a safer age group or small changes in your lifestyle can contribute to a lower premium.

Get Quotes Online

You can save money by finding a cheaper insurance provider. We don’t suggest jumping from one insurance provider to another often but comparing what you’re getting from time to time can save you money. You can compare what you’re getting with other offers by getting a quote from another Car Insurance provider for free online. You could even keep an eye on your current insurance provider’s social media and website for any discounts or specials you can take advantage of.

Information and statistic in this article are correct at the time it was written. The information in this article is provided for informational purposes only and should not be construed as financial, legal, or medical advice.

 

Sources: Insurance Explained; Consumer Reports, Auto.HSW;

 

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