When days are dark and funds are few, you may wonder if your car insurance is still right for you. Whether you’re looking around for car insurance quotes or just wanting to negotiate lower premiums, maybe consider how your current insurance provider is calculating your monthly premium. Some of these factors might surprise you.
What Kind Of Car Insurance Do You Want?
The journey for saving a thousand Rands in car insurance premiums begins with your current policy. It may be a good idea to review the benefits of your current insurance policy and decide what’s worth keeping and what you can talk your insurer down on.
Most South African car insurance companies offer three types of insurance policies:
- Comprehensive
A comprehensive car insurance policy covers your car, not only for loss due to theft and accidents, but also includes third-party cover. Some insurers also throw in 24-hour roadside assistance and hail cover.
- Limited
A nice, little middle ground for a lot of drivers, this policy covers your car against loss as a result of theft or accident, as well as third-party cover. Depending on your insurance provider, you may also get the benefit of 24-hour roadside assistance without any vehicle tracking required (although it doesn’t hurt your chances).
- Third-Party Only
This is often the most affordable policy. However, there is nothing for mahala. The reason this policy is the easiest to fit into a tight budget is because, as the name says, it only covers the cost of paying out to a third party in the event of an accident. While this policy covers vehicles of any age, it’s unlikely to pull through for you in paying off damages to your own car in the event of an accident.
What Factors Affect Your Car Insurance Premium Amount?
If you’re concerned that your car insurance premiums are too high, consider the following factors that may be indicating that you are a greater risk to your insurance provider. Remember: the higher the risk, the higher the premium.
- Demographics, like age, gender, marital status, etc.
- Financial background / Credit score
- Certain car makes or models that are expensive or have manufacturing faults that thieves can exploit
- Economic inflation
- Main driver for a car as listed in your insurance policy
- Security measures: vehicle tracking device, location of your home or where it’s parked
- Crime rate in your residential area
- How often you applied for insurance claims in the past
- Telematics on your car
Why It’s Important To Know How Your Insurance Is Calculated
By knowing what factors influence your monthly car insurance premium, you have leverage in negotiating a lower premium with your insurer in future. In the meantime, the best way to lower your monthly premiums can be to shop around for a new policy. At All Things Motor, we go the extra mile to find a selection of car insurance quotes, so you don’t have to spin your wheels, trying to find the best deals for your budget. Apply now and get these quotes in minutes!