It’s not impossible for even those in South Africa to find the right car insurance if you understand your cover options and the techniques needed to save on car insurance premiums.
Car insurance comes in three basic types, which are Comprehensive, Third Party, and Third Party Fire and Theft. Third Party pays for damage to other people’s property if you cause the accident. Third Party Fire and Theft also covers damages caused by fires and attempted thefts. Comprehensive Cover also includes damages to your own car in an accident that is caused by you.
Comprehensive Cover is the most expensive, but it provides the most benefits, and is really the type of insurance most South Africans should have to completely cover their risks. Now that you know what you can buy, let’s examine ways to get that cover at the best price. Here are ten ways you can reduce your insurance premiums. They may not all work for you, but everyone can find something that will work.
If you are in the market for new insurance, the first thing you need to decide is what you want in your policy. You have decide what are you looking for the policy to cover. How much of deductible do you want, and how many cars are you going to cover. And if you own money on one or all of them, make sure that you have complete coverage. The best thing to do is do some research and then compare companies. That way you can make sure you make the best decision you can for what the cost is and for what you want.
If you can afford it, raise your excess amounts to save money in the long run. Just be sure you can pay the excess when you file a claim.Each policy comes with an minimum excess amount. This is the amount you will be responsible to pay in the event you file a claim.
There are benefits to being a safe driver and having a good driving record. If you are safe driver and go a year without claims many insurance companies offer discounts on your premium. If your insurance company does not offer this you might want to look for one that does.
High performance and expensive car models cost more to insure due to their increased risk profile and expensive replacement parts. Be sure to include your insurance premiums in your car shopping budget. Always consider your insurance costs when you’re shopping for a vehicle.
Living in high crime areas will increase your rates due to there being a greater possibility of your vehicle being stolen or hijacked. You should greatly consider moving to a better neighborhood, not only to save money on premiums, but for greater personal safety.
You may be eligible for a discount if you park in a locked garage or behind a locked gate overnight. By not having your car on the street, you reduce the chances of it being stolen or damaged and this, in turn, reduces the cost of your premium.
Insurance companies tend to require minimum security requirements for insured vehicles. By adding devices like global tracking devices or gearlocks, you can exceed the minimum requirements and be eligible for a discount.
The number of people that are allowed to drive your car will effect your premiums. So when shopping for insurance, it is best to keep the people on the policy as low as possible. The reasoning for this is that the less people that drive the car will make it a lower risk for accidents or things happening.
Don’t be afraid to negotiate. Many insurance companies are flexible about their premiums and will be willing to work with you in order to earn your business.
Tom Martens is the syndication coordinator for Carinsurancesa.co.za. South Arica’s leading car insurance portal.
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