Roughly 65 percent of South African motorists don’t have car insurance. That is extremely worrying for the minority who do. What is preventing all these people from assuming responsibility and buying at least the basic cover?

We will start with a look at the different types of insurance. There are three basic types of insurance in South Africa.

The minimum cover is Third Party. This covers your liability (costs) if you damage someone elses personal property in an car accident. This includes other cars or structural property that may also be damaged.

You can add to the minimum by purchasing Third Party Fire and Theft. This will cover you in the event that your vehicle is damaged by fire, theft or attempted theft.

Comprehensive cover is the one that is recommended for most South Africans. And the aAdvantage of comprehensive motor insurance is that it is unique as it covers the most South Africans including Third Party Fire and Theft. It also extends to cover the damages to your own or someone else’s car when you are driving it.

Other vehicle insurance options are designed to meet the needs of drivers operating in the unique South African driving environments. These include motorcycle cover, off-road comprehensive cover, and caravan cover.

Because South Africa is a high risk insurance environment, premiums can be high. But you can take some steps to lower your premiums.South Africa is often a world leader in traffic injuries and fatalities and the roads are becoming increasingly dangerous. Car theft and hijackings are also all too common.

When deciding on a policy, it’s best to shop and compare quotes first. The best way to do this is by looking online which may enable you to get a lower price according to the company you want to work with.

If you remain accident-free, you can expect to pay lower monthly premiums. If your current insurance provider does not offer discounts for safe driving, it might be time to shop around for better rates.

Examine your excess amount. The higher the excess, the lower the premium because you are responsible to pay the excess in the event of a claim. If you can afford it, raising your excess amount will help you save in the long run.

If you own an expensive or high performance vehicle, you will pay more for your premiums. These cars cost more to insure because they are considered a higher risk and are expensive to replace or repair. So when you car shop, keep in mind that your insurance premiums will add to the cost of owning the vehicle you choose.

Insurance companies often have minimum security requirements for the vehicles it secures, so if you add security devices that exceed the minimums, you could receive a discounted premium.

If you live in a high crime area, your car is at greater risk for theft or hijacking. Consider moving to get lower premiums. You can also receive a discount if you park your car in a locked garage or behind locked gates overnight.

Don’t be afraid to negoiate a deal with your insurance company, because they are very interested in keeping your business and willing to work out a deal with you.

Tom Martens is the content syndication coordinator for Carinsurancesa.co.za. South Aricas leading car insurance portal.

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