You’ve ordered your brand new car, and now you have to insure it against accidents and theft. Here are some useful tips to help you save some cash and ensure you are offered lower premiums.
1. You don’t have to take the first quote you get
The “three quote rule” applies to most situations and car insurance is no exception. Premiums can differ by quite a bit from various insurance companies and shopping around to get the best deal is the intelligent way to go about it. You may decide to stay with the company you have been with for years, or a switch to a new insurance could save you money on your home contents cover too. Be rewarded for being a woman with a tailor-made car insurance policy from FirstforWomen. For more details, click here
2. Decide whether you want the optional extras
There are different options you can take when quoted on car insurance; for example deciding whether to insure your sound system, tow bar etc, and taking a hire car cover option in case of theft or accident. You can save yourself some money on the monthly premiums if you only insure your basic vehicle.
3. Consider the higher excess option
When you ask for a quote for vehicle insurance, you will usually be offered two excess options. By opting for the higher excess, you will probably get a discount on your premium. This will probably save you more money over the years compared to the extra R1000 (for example) you may have to pay as part of your excess should you ever have to put in a claim.
4. Insure your car for private use only
If you only drive your car for private purposes or very seldom for business use, insure your car for private purposes only. Vehicles insured for private use only incur lower premiums. If you occasionally use you car for business purposes, negotiate a discounted premium; most insurers will still offer you a reduced premium.
5. Be a cautious and responsible driver
If you have not been involved in any accidents or have not submitted any claims in the last five years, you will qualify for a reduced premium. You can ask for a discount when you take out your insurance policy and if you do not claim for five years, some insurance companies will reward you with a no-claim or “bucks back” bonus.
6. Consider where you live and where you will park your car
If you live in a high risk area or in a city, you will pay a higher premium on your car insurance due to increased high-jacking or theft risks. If you do not have off-street parking where you live and have to park your car on the street, your premiums will be higher than if you parked behind locked gates, or even better, in a locked garage.
Insurance companies will ask you where your vehicle will be parked overnight when calculating your premium. Make sure that you park where you have specified on your policy, as they may dispute a claim if you have a garage but your car is stolen because you did not use it.
7. Be prepared to pay high premiums for high performance cars
High performance, luxury vehicles are usually seen as a higher risk by insurance companies (especially if you're under 25). The cost of parts as well as repairs to the body work are also more expensive.
8. The more security features on your car, the lower the premiums
Even if your insurance company only requires, for example, a level three security system on your car, install as much extra security as you can afford. An anti-hijack device, tracking system, or gear lock may qualify you for an extra discount (as well as give you peace of mind).
9. Specify who will be driving your car
When your quote is being calculated, you will also be asked who the regular driver of the car will be: this does not mean that the car will not be insured if another family member is driving and is involved in an accident, but the insurance company will appreciate it if you let them know names of other possible drivers. This will help your insurance company to calculate their risk.
10. Negotiate to get the best deal
If you're not happy with the quote, ask for a discount and see how flexible the insurance company is with their premiums. Ask them how you can reduce the premiums and consider whether it is worth making the necessary changes (for example fitting a tracker device). If you existing insurance company wants to keep you as a client, they should be willing to offer discounts; if not, there are many insurance companies out there who will.