South Africa is infamous for its high crime rate and deadly roads, so not surprisingly finding cheap auto insurance can be an nearly impossible task. However, there are a few ways of ensuring that you get the lowest doable premiums on your car insurance. Depending on your current insurance policies and individualized situation some of the following tips could help to reduce your insurance costs:
1. Comparison Shop All too often South African consumers opt to purchase the first insurance policy from the first broker or insurer whom they contact. Getting quotes and advice from several insurance companies or brokers is essential for not only finding the cheapest policy but also for getting accurate advice. Comparison shopping can be done by calling several insurers and requesting quotes or alternatively can be done automatically via websites like InsuranceHound.co.za.
2. Keep Your Credit Rating Clean Insurers have identified a direct correlation between consumers’ credit histories and the risk the pose to an insurance company. Therefore, someone with a bad credit history is likely to pay higher premiums than someone with a good credit history.
3. Cut Down On Your Mileage Some insurers offer discounts for people who drive less than a certain number of kilometers per month. Companies like Hollard offer special insurance products aimed at people who don’t drive much. Try to use public transport where doable and fly down to the coast for your holidays instead of painful up mileage by driving down.
4. Drive Defensively You might be offered cheaper premiums if you have a good driving record. Your driving record takes into statement the number of accidents, fines and convictions (like drink driving) that you have accumulated in the past 3-5 years. By driving within the speed limit, expecting doable collisions and avoiding driving under the influence you can not only save money but possibly also lives. Some insurers also wage discounts for drivers who have finished accredited defensive/advanced driving courses.
5. Purchase A Low Risk Automobile Car theft is a major reason why premiums on automobile insurance in South Africa are so high. Certain makes and models of automobiles are hotter targets for criminals and are thus higher risks for insurers. Vandalism is also a problem and flashy, high-performance automobiles tend to be targeted more often than old beaters. In other words, purchase a station wagon!
6. Park In A Garage By parking your automobile in a garage you reduce the risk of your automobile being stolen, vandalized or bumped by other cars. You will most likely get a lower premium if you have a garage at your disposal.
7. Safety Devices Immobilisers, automobile alarms and automobile tracking devices all reduce the chances of your automobile being stolen thus reducing the risk to insurers. In fact, most South African insurance companies will not cover your automobile unless certain devices like immobilisers are installed. Weigh up the cost of higher premiums versus the cost of installing a tracking device before making this decision.
By implementing some or even all of these tips you could bring your monthly automobile insurance costs down to a level that doesn’t leave a hole in your pocket!
Candy Summers is a market analyst at CheapCarInsurance.co.za. Candy monitors and reports on developments in the insurance industry in South Africa. She specialises in analysing online car insurance and motorcycle insurance marketing trends.
