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Thursday / 6 February 2025
HomeFeaturesBig car insurance lie in South Africa

Big car insurance lie in South Africa

It’s a common misconception that your insurance premium will always increase following a claim.

While it can go up after an incident where you had to get damages repaired, it’s not always the case.

“Many policyholders worry that their insurance premiums will automatically spike after a claim has been submitted. This common misconception even deters some people from using their insurance when they need it most,” said prominent insurer MiWay.

“The reality is that not all claims result in increased costs. Premiums are reviewed annually, usually based on which month one took out the policy, rather than being directly tied to whether a claim was made or not.”

MiWay explains that insurers consider various elements when determining your monthly dues, such as the frequency of claims, the nature of the incident, and your overall risk profile.

If you’re a policyholder with a history of regular claiming, or you tend to claim for minor incidents, you may see a rise in premiums over time, as this can indicate a higher risk.

Reducing the chances of claiming

MiWay advises that to keep their premiums as low as possible, motorists should adopt strategies that reduce their likelihood of needing to claim.

This includes regular vehicle maintenance that ensures your ride remains roadworthy and safe to use.

Learning safe driving habits also helps minimise your insurance costs, as do taking precautions to secure your property.

By following these methods, you’ll be able to keep your insurance premiums relatively stable over time.

Additionally, it is important to align insurance coverage with current risks.

Should you have recently moved into a new home in a more upmarket neighbourhood, or if your car no longer sleeps outside at night, it’s worth mentioning that to your insurer as it could have an impact on your coverage.

Businesses, especially, should also conduct regular risk assessments and update their policies to reflect any operational or environmental changes.

“This proactive approach not only helps in managing premiums but also ensures adequate protection against both existing and emerging risks,” said MiWay.

Understanding how premiums are calculated and what factors influence them greatly assists consumers in making more informed decisions about their coverage.

“Regular policy reviews, coupled with effective risk mitigation, are critical to maintaining both adequate protection and cost-effective insurance,” concludes the insurer.

“This way not only protects an individual or business against potential risks, but also avoids unnecessarily inflating premiums.”

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