With the cost of living on the rise, finding ways to save money has never been more on the minds of South African drivers. Thankfully, reducing your car insurance premiums doesn’t always mean you have to skimp on coverage. Simply knowing what affects your vehicle insurance costs and making smart choices can help you keep more money in your pocket.
Your Car and Its Impact on Insurance Costs
The type of car you drive plays a big role in how much you pay for insurance. Cars that are safer or less likely to be stolen usually come with lower premiums. If your car’s safety features include airbags, an anti-lock braking system (ABS), parking sensors or stability control, it’s often cheaper to insure than older cars without these features.
However, if you drive a high-performance or luxury car, your insurance will probably cost more due to expensive repairs or parts that need to be replaced. On the other hand, older cars might not have advanced safety features that keep premiums low.
Tip: Before you buy a new car, get some insurance quotes so you know what you’ll be paying.
How Your Driving Affects Your Premium
Your driving record is a major indicator of how much you’re likely to pay for car insurance. If you have a clean record with no accidents or traffic tickets, you’ll likely pay less. But if you’ve had accidents or traffic violations, or you recently got your driver’s licence, your monthly car insurance premiums will be higher.
Some insurers offer a discount if you’ve completed an advanced driving course. These courses teach defensive driving techniques, like driving safer around bends, maintaining a safe following distance and being more aware of your surroundings. All this can make you a safer driver which will lower your risk of getting into an accident.
Tip: Before signing up for a defensive driving course, ask different insurers whether the course will lower your premium.
Where You Park Your Car Matters
Where you leave your car at night can affect your insurance costs. Cars parked in secure garages or behind a gate are less likely to be stolen or damaged, which can result in lower premiums. On the other hand, cars parked on the street or in high-crime areas are at higher risk, which means you’ll pay more for insurance.
If you move to a safer area, be sure to let your insurer know. By updating your parking details, you might be able to reduce your premium.
Tip: Always let your insurer know if you change your address or parking situation – depending on the insurance provider, you could save some money.
Comprehensive vs. Third-Party Insurance
Choosing the right level of insurance coverage can also help you save money. Comprehensive insurance covers the broadest range of risks, from accidents and theft to smash-and-grabs and natural disasters, but it costs more than third-party insurance, which only covers damage you cause to other people’s property.
Your choice between these types of coverage should depend on your car’s value and your ability to pay for repairs out of pocket. Some insurers offer discounts for cars with anti-theft devices, making comprehensive cover more affordable.
Tip: Review your coverage every year. If your car’s value has dropped, switching to third-party insurance could lower your costs.
Opt for a Higher Excess
One way to lower your monthly premium is by choosing a higher excess – the amount you pay out of pocket before you can claim. While this reduces your monthly costs, it means you’ll pay more if you need to make a claim. This option is best for low-risk drivers who can cover a higher excess if needed.
Tip: Think about your driving habits and financial situation before deciding on a higher excess.
Shop Around for Better Deals
Insurance premiums often increase over time, especially around the start of the year and mid-year. But just because your premium has gone up doesn’t mean you have to accept it. Many insurers offer competitive rates to attract new customers, so you might find a better deal elsewhere.
Tip: Get a new quote each year, especially if your premium has gone up
Keep Your Insurer Updated
Life changes like moving, getting married, or changing your daily commute can all affect your insurance premium. For example, if you move to a safer neighbourhood or start driving fewer kilometres, you could qualify for lower premiums.
Tip: Regularly update your insurer about any changes in your life to avoid overpaying for insurance.
Consider Usage-Based Insurance
Usage-based insurance lets you pay based on how you drive. This type of insurance will require a tracking device installed in your car so the insurer can assess your driving habits, like speed, braking, and mileage. If you’re a skilled driver or don’t drive often, you could save money with this option.
Tip: If you drive less and have a good record, think about switching to usage-based insurance to lower your premium.
Ask for a Discount
Many insurance companies offer discounts for safe driving, bundling your car insurance with other policies, paying your premium annually instead of monthly, or for drivers over 25. Some insurers also give discounts for insuring multiple cars or for having certain safety features in your vehicle.
Tip: Ask your insurer about any discounts you qualify for.
Don’t Accept Premium Increases Without Question
Disclaimer
The article aims to provide South African motorists with information on how they can save money on their insurance premiums. However, it’s important to always do your own independent research.
Get a quote for affordable Comprehensive car insurance with Prime South Africa for fixed premiums*, reducing excess*, and top-tier service. T&Cs apply.
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