Many motorists realise that car insurance is a necessity and not a luxury. But you do not have to pay more than you need to for car insurance, especially during these financially challenging times in South Africa. Let’s find out more about how to save money on car insurance in 2022.
Go online and compare premiums
Suppose your car insurance premium has suddenly increased. Shop online for better rates1. Be careful not to go for the lowest quote without confirming the company’s reputation. For instance, what are the pay-outs like for that specific car insurance company? Do they pay out quickly for claims? Check the financial viability of the car insurer so that they will always be able to settle claims timeously1.
Insure your cars with one insurer
Instead of insuring your cars with more than one insurer, it makes sense to ensure the whole lot with only one1. Also, it gives you more clout to negotiate a good deal with the insurer. In return, the insurer can discount your premium for the extra business he gets1.
Get a smaller car
Circumstances change, and you may no longer need to travel in a large car. Downsizing to a smaller car means savings on fuel and insurance1. Also, choose a car that doesn’t have expensive car parts to reduce the insurer’s repair bill after an accident and therefore your premium1.
Keep your mileage low
The fewer kilometres you drive per month, the less the chance of an accident1. This, in turn, could lower your premium1. So, joining a lift club reduces stress due to less driving and lowers your car’s mileage.
Maintain a good driver profile
Car insurance is about risk – the greater the risk, the higher the premium1. A driver profile describes your driving history. The better you drive, the lower the risk and the lower the premium1. So, keep on driving carefully and defensively to maintain lower premiums.
Going on a defensive driving course
Find out from your insurer if attending a defensive driving or accident prevention course could lower the premium1`.
Increase your excess
An excess is what you need to pay the insurer out-of-pocket after submitting an insurance claim1. The general rule is that the higher the excess, the lower the premium and vice versa1. So, beware that by raising your excess, you’ll still have sufficient cash to pay the insurer after an accident.
Installing a tracking device
Ask your car insurance company if such an installation in your car will lower the premium1.
Disclaimer
Due to car insurance’s complexity, this article can only supply you with information. Consult a certified financial advisor for professional advice before you consider buying car insurance.
If you want to save on car insurance, PMD is the one to contact. Learn more about their affordable, car insurance products with unique benefits or buy car insurance online with PMD.
Source:
1https://www.investopedia.com/articles/pf/08/car-insurance-costs.asp
This article was prepared by Eric Sandmann in his personal capacity. The views and opinions expressed in this article are the author’s own. The views and opinions in the article should not be attributed to anyone but the author unless expressly stated. Nothing in this article should be relied upon as advice, this publication is presented for informational purposes only. No person should act or refrain from acting in reliance on any information found in this article, without first obtaining proper financial advice from the appropriate professional. The author makes no claims, promises or guarantees about the accuracy, or completeness, of any information linked from, referred to, or contained in this article. The author reserves the right, to edit and change the content of this article.