|
Car insurance, if you have a car, then you need insurance. This isn’t just good judgement, it’s also law. So, how can you pay your car insurance and save money at the same time? Here are a few tips.
Shop around:
Different insurance companies evaluate risk differently and so issue varying rates. It will benefit you to shop around first and identify the ideal package for you.
Buy a low risk car:
The higher your car’s performance, the higher your premiums. It’s sad but true. These cars tend to be considered high risk by insurance companies and even more so if they are driven regularly by people under the age of 25. So Think carefully before splashing out on that speed machine.
Pay a higher excess:
The rule of thumb is: the higher your excess the lower your premiums. An excess is the portion of any claim that is not covered by the insurance provider. So, say for example your excess is R 1000. You have an accident and run up damages of R 3000. Therefore your insurance company will only pay out R 2000, but only after you’ve paid your excess of R 1000.
Naming a regular driver:
The lower the number of drivers you have, the lower your risk evaluation will be. Then of course you’ll pay a lower premium. It helps if you specifically name the people you will allow as regular drivers. Naming an older driver can save you up to 10 percent.
Improve your driving skills:
It’s a fact. Careful drivers who have a good safety record tend to pay less in premiums than your average speed demon. This is due to their low risk profiles and the more years that they spend not making claims due to accidents.
The area you live in:
The area you live in can seriously affect how much you pay for your car insurance. The riskier the area in the eyes of the insurance company, the higher your premiums. One option to avoid this would be to move.
Installing car security:
Generally, installing a car security system can lower your premiums. Fortunately, most new cars come with car security systems as a factory standard. If you still feel the need for enhanced security, discuss it with either your insurance company or broker to determine how much discount you can receive.
Vehicle location and storage:
Do you have a garage? If so, use it! Cars locked up overnight in a secure garage will attract lower premiums than a car that is parked out on the street.
Don’t use your car for business purposes:
Try to avoid using your car for business purposes. This usually results in a higher monthly premium so try insuring your car for private and use it for business purposes sparingly.
|
