How to Reduce Your Car Insurance Costs0
Car insurance is not cheap because the risks you are covered for are pretty big, but there are ways you can get lower car insurance quotes. You need car insurance because you never know when you might be in an accident, and good insurance will help cover the cost of replacing your vehicle as well as damage to property or injury to yourself or others. You can lower the cost of car insurance quotes with sensible shopping, and some good tips! But remember: each of these tips is a trade-off, a compromise between the insurance cover you want and the premium you can afford.
Choose Your Car Carefully!
If the cost of car insurance quotes is a critical issue for you, as it is for most people, then you need to start by choosing a vehicle that is cheaper to insure. Avoid luxury or expensive cars with big engines and avoid anything that is likely to attract thieves or hijackers, such as big 4x4s and bakkies. Sometimes even the colour of your car can affect your insurance premium, so check this with your insurance company before you commit to buying any vehicle!
A Higher Excess Gets You Lower Car Insurance Quotes
Car insurance quotes will be lower if you are willing to pay the first part of any claim yourself. This is called an excess. If you have a total excess of R5,000 (standard plus voluntary excesses) and your claim is for R20,000 then your insurer will only pay you R15,000. This means that you do need to have the cash to pay the excess and should only specify an excess that you can afford if the worst does happen. That higher excess gets you lower monthly premiums though.
And the news isn’t all bad, you can try to recover your excess from another driver if the accident is his fault or your insurer may include this service. However, don’t count on this because the at-fault driver may have no assets or income that can be used to repay you and the legal costs of trying to get your money may be prohibitive.
Limiting Drivers to Get Lower Car Insurance Quotes
An “any driver” policy will cost much more and if you limit the insured drivers to yourself and your spouse or partner then your insurance quote will be lower. This is because “any driver” policies will include younger and inexperienced drivers who are more likely to be involved in an accident. If you have children of legal driving age you might not be able to do this, but if your kids aren’t old enough to drive yet, it’s worth getting a restricted driver policy to lower car insurance quotes.
Get Married for Cheaper Car Insurance Quotes!
It might seem strange to tell you to get married because of car insurance, but the truth is that single people usually pay higher premiums. If you are married then statistically you are a safer driver and less likely to make an insurance claim, so the car insurance quotes you get will be lower. The saving probably isn’t going to pay for the wedding, but every little helps if you’re already considering getting married.
Take an Advanced Driving Course
Many insurers will offer you lower car insurance quotes if you take an advanced driving course and pass an advanced test. More training over and above the basic South African driving test will make you a better driver and less likely to be involved in any accident because your ability to anticipate what other drivers will do is higher after your advanced training. This simply results in cheaper car insurance quotes.
Car hijacking is a major problem in our country and increases the cost of everyone’s car insurance. South Africa has a big problem, especially in urban areas, where organised gangs steal cars, vans and bakkies to order from our neighbouring countries. The loss of a R300,000 vehicle is obviously something that every insurer wants to avoid, and vehicles with trackers are more easily recovered by the police. Thieves are less likely to steal your car if they know it has a tracker fitted, so you are less likely to be traumatised in an armed hijacking situation. If you are insuring a vehicle that is a popular target for criminal hijackers your insurer may insist that you fit a high-end tracking device. But even if you’re not, you might want to consider getting that tracking device anyway, since it will result in lower car insurance quotes.
Voluntary Restrictions on Driving
Some car insurance companies will offer you a discount if you have a low annual mileage, while others will offer lower car insurance premiums if you are willing to avoid driving at certain hours of the night. If you have two vehicles it might be worth looking at the discounts on offer for limiting your driving times or distances, but this could be more trouble than it’s worth if you only have one vehicle, since there will be times when you cannot drive whilst still being covered by your insurance.
Combo Discounts Equals Lower Car Insurance Quotes
Insurance companies sometimes also offer discounts if you insure more than one vehicle or take out home insurance as well as car insurance. This is always worth checking once you have decided on your preferred insurer, since it can end up saving you a fair amount of money.
Market Value Vs. Retail Value
Your car is worth different amounts depending on who you talk to. You need to decide on which of these amounts to insure it for and that decision will affect any car insurance quotes you get.
Retail value is the price in a garage for the exact same replacement vehicle. It is much higher than market or trade value. It is probably only worthwhile specifying retail value if you have a new car straight from the showroom.
The trade value is about R10,000 lower than the retail value (the price you could expect if you traded a vehicle in), and market value lies somewhere between the two and as a rule insuring for the market value is the best option. If you insure a 10 year old car that you could only trade in for R30,000 for R300,000 the insurer is not going to pay you more than R30,000 regardless of what you thought it was worth. The lesson here is that if you want low car insurance quotes, be careful about the amount that you’re insuring your car for.
Lower Car Insurance Quotes: The Bottom Line
You can always get cheap car insurance quotes, but there may be disadvantages such as high excesses, no legal cover or inconvenient limits as to when you can drive your car. Shopping around, both online and with local companies will always get you a better deal. Some insurance company websites include a car insurance calculator that will give you a rough idea of what your quote will be. Sometimes changing to a new insurance company will get you an introductory discount too, so don’t feel you have to stick with the same insurer year in and year out.
Follow our advice above, and shop carefully, maybe check out our listings section to see which insurance companies other customers are satisfied with, and you’ll be sure to get the lowest car insurance quotes around!
Main Subject: Car Insurance Quotes