Cheap Car Insurance – Background
Although it is a legal requirement, the expense of purchasing car insurance is an easy deterrent for many South Africans. Many people feel forced to choose between buying car insurance in South Africa or allotting that money for other necessary living expenses. In some cases, the money spent on the car (which may very well be a second or third hand car) was all one had available for the purchase and maintenance of a car.
However, in addition to the legal implications, there are significant risks in not obtaining motor insurance. If you are involved in an accident that is your fault, you will have to cover all repair costs for your vehicle, as well as any costs related to the other party involved – both medical and repair costs for their vehicle. The amount involved can be exorbitant and will far surpass the cost of any car insurance in South Africa – especially if you managed to get cheap car insurance. Additionally, you expose yourself to being sued in such a situation. Should you be the ‘victim’ in a car accident situation and you do not have vehicle insurance, you will be the one spending time claiming damages and trying to get money to cover the repair of your vehicle – something that is not always easy to do. On the other hand, if you had car insurance, they would pay you the damages and then they would be the ones trying to claim it back from the other party we caused the accident.
With the level of crime in South Africa increasing, you are also putting yourself at higher risk should you experience carjacking, theft or other car related crime without having car insurance and might even find yourself with no car and no way to fund the purchase of a new one.
The above being true, it is obvious that car insurance is a must. The only question that remains, is how to reduce the cost. Of course, there are ways to minimize the cost of car insurance in South Africa – read on for tips on how to obtain cheap car insurance, as well as what factors will likely affect car insurance premiums and rates.
How to get Cheap Car Insurance
Compare Car Insurance Quotes – Before agreeing to any car insurance policy, make sure you shop around and compare car insurance quotes by getting online insurance quotes from several insurance companies. In doing so, make sure you provide them all with the same information. Don’t be hesitant to ask for discounts or to share a lower quote you received from another company – this is advised. If you already have car insurance and the renewal date is coming up, threaten to switch companies if they will not match the lower price.
Know the Different Policy types – One way to maximize your chances of obtaining cheap car insurance is to understand the difference between the policies and the types of coverage offered. Some require paying more money each month, but less should there be an accident. Other policies require less money initially, or monthly, but you may end up paying higher deductibles or rates in the event of an accident. Decide what best suits your financial situation.
Anti-Theft and Security Measures – Car insurance companies often reduce premiums based on the amount of security measures that you have on your car. For example, cars kept in a locked garage or those that have an alarm system will result in a lower cost for the vehicle insurance. If you don’t have these options, you can always buy a steering wheel lock and make sure to tell the insurance companies when asking for quotes.
The Type of Car You Drive – Certain models and types of cars have higher insurance premiums because they are more likely to get stolen or hijacked, such as SUVs or flashy sports cars. Additionally, some cars are more expensive to repair. Keep this in mind when you choose the car you buy.
Keep Your Mileage Low When Possible – If you don’t drive your car much or only use it for short distances, make sure to inform the insurance companies. The less you drive, the less risk of something happening to your vehicle. Hence, you can often get a lower premium.
Clean Accident History – Your accident history also has an effect on your ability to obtain cheap car insurance. If you have a clean accident history, the insurance companies view you as being less of a risk and will offer lower premiums as a result. If you have had accidents in your history, you can open a policy in another family member’s name who has not and just add your name to that policy.
Combine Policies – If you have household insurance as well, try to include your car insurance in the same policy. Often this results in lower rates.
Marital Status – Be sure to let the insurance companies know your marital status. Research has shown that family people drive more calmly than single people. As such, if you are married, it can positively affect lowering your insurance premiums.
All in all, buying car insurance in South Africa can be a costly endeavor. However, with the tips listed above, there are clear ways to minimize the cost and secure cheap car insurance. At the end of the day, a split second mistake on your part or someone else’s mistake can have serious consequences for you if you don’t have some type of motor insurance coverage. Is it really worth taking the risk?
Looking to reduce your car insurance costs, just fill in your details in the form on the top left side and an agent will get back to you with a cheap car insurance quote
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