The pandemic in South Africa has affected many households financially, so any news about how to reduce living expenses is excellent news. This article will show you how to save on your car insurance premiums in 20221.
Despite the mounting financial pressures on your budget, it would be best to maintain a car insurance policy to protect yourself and your car. Choose a car insurance plan that best suits your needs and budget. For example, having third-party car insurance could be extremely beneficial for you. But it’s important to know that you have the best deal possible regarding your current policy or new policy1. Below are several ways you can follow to reduce your car insurance premiums1.
- Incorporate all your vehicles into one policy
You, your wife or partner, and your children may all have cars. You may be paying more for your teenage son’s car insurance because he lacks experience and a proper driver’s profile1. If you have different policies with various car insurers, you’ll pay more than combining them into one policy1. This way, you’ll also have some bargaining power to negotiate a good discount with the insurer. The insurer benefits as he obtains more business. You could increase your car insurance discount by, for instance, insuring your household contents with the same insurer1.
- You need a good driver profile
Car insurance is all about risk. The riskier you are as a driver, the higher your premium will be1. So, it pays you to drive well and build up an excellent driver profile, with few or no claims made over time. Then, maintain your profile for continued benefit. Some insurers provide incentives to customers to encourage them to be good drivers1.
- Take a course in defensive driving
Find out if your insurer can provide a discount if you attend a defensive driving course or a similar one. The insurer will benefit because your improved driving should minimise any future claims1.
- Look around for lower car insurance premiums
Suppose your policy is up for renewal or your annual premium has increased dramatically. Go on the Internet and learn more about the cost of car insurance premiums offered by different insurers1. But beware – a low premium does not necessarily mean you have a good deal1. The insurer must be of good repute and be able to settle claims effectively and in good time. To save time, find a site that compares different premiums offered by various car insurance companies.
Lower your mileage The more kilometres you drive a day to work, the higher the risk of an accident, and the higher the premium1. The converse is also true. During the pandemic, many drivers stay home during the week attending Zoom meetings and only visit the office for a few days. Seeing this could considerably reduce your monthly mileage, try to negotiate a lower premium with your insurer1.
Disclaimer
This article can only provide information because car insurance is so complex. First, consult a certified financial advisor for professional advice if you want to buy a car insurance product.
According to the law, you’ll need comprehensive car insurance if you plan to buy a new car with bank finance. PMD offers affordable car insurance with fixed premiums* and an excess that reduces to zero* T’s and C’s apply.
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.