Top 10 tips for the Cheapest Car Insurance

So we’ve all been fleeced by insurance companies which successfully capitalise on fear that something bad might happen in the future. Unfortunately, the reality of the situation is that if something bad does happen it really can be quite difficult or unmanageable financially. The question is what can we do to manage this risk as cost-effectively as possible?

Below are some basic tips that could help you save quite a chunk of money when looking for cheap car insurance in South Africa:

1. Shop around on the internet and make a few calls to find out what’s available in terms of car insurance. There are some insurance quote websites such as Hippo.co.za but don’t only restrict yourself to these – see which insurance companies these sites are giving you quotes from and contact those that are not on the list. Sometimes consolidated quote sites obtain their quotes from different brands or insurers all owned by the same parent company! So, pick up the phone and phone around for quotes.

2. Make sure that your car insurance policy details accurate information about your car. It may seem obvious but this is a frequently ignored tip. An incorrect model or year for your car, or even the colour of the car could affect your insurance premium. To make things worse, if you do have to claim and the incorrect car details are what is insured, this may even possibly impact the claim itself. If you have a no-claims record, be sure to include those details in your application too – so, check your details carefully.

3. Unless you plan on smashing your car about every month, choose one of the policies with higher excess on it. Reducing the excess, or deductible as it’s sometimes called, usually significantly increases your monthly insurance premium. Be diligent in saving the extra money you would have had to pay for the lower excess each month. If you do have to claim, you can use those savings to pay for the excess but if you don’t claim, then that’s the amount you’ve saved. Some insurance companies like Outsurance pay you back a portion of your premium if you don’t claim each year – this is usually a much smaller percentage of what you would have saved if you didn’t make a claim anyway – so, take a higher excess policy and save the extra money you would have paid for the lower excess.

4. While you do want to enjoy what you drive, the type of car you drive plays a big role in determining how much insurance you pay. Sports cars, SUVs, performance cars etc are fun but they also send your insurance premiums sky-rocketing. If possible, choose low-key vehicles and avoid those that are a high theft-risk. So, if you want to save big money on your premiums, choose a boring car instead of a flashy one.

5. Secure your car as best you can – this will help lower your premium. Tracking devices, gear locks etc all help reduce the insurance premium you have to pay each month. So, when you’re getting quotes, ask the insurer how much of a discount you get if you have extra protection.

6. Where you live matters when it comes to insurance. Check with the insurance companies how they classify your area – different companies often have different risk classifications for areas so your premiums might be lower. This varies by province, but can also go down to suburb level – so, check your premium based on the location you registering your car in.

7. If you’re buying household insurance, be sure to ask your insurer if they have any special deals that combine car insurance and household insurance. So, consider buying a bundle if it will drop your overall payments.

8. If you don’t drive much, be sure to check out car insurance policies that give you low-mileage discounts. so, try to estimate your mileage in a given year and see if you meet the discount criteria.

9. If you’re already insured, you don’t necessarily need to change your insurer to get discounts – it’s generally much cheaper for insurance companies to give a discount and retain you as a customer than to try to acquire a new customer – so don’t be shy, ask for a discount!

10. Finally – drive safer! Again, an obvious one but no claims means reduced premiums.

Remember that no matter what, be sure to shop around before you decide and never automatically renew your policy – make any insurance company you choose work hard for your business so you get cheap car insurance!


Hollard Pay-As-You-Drive

PPS Home & Car

YouInsure

Insurance Hound

SA Hot Rods

Sponsor Wonkie leaderboad ad