Tips for keeping your car insurance premiums low in South Africa

For South African drivers who can afford it, car insurance is a necessary expense for avoiding financial headaches should an accident happen.

However, while it’s necessary, that doesn’t mean it’s an absolute in terms of the amount that needs to be paid each month.

There are several methods one can use to reduce monthly payments that are easy to implement or keep in mind while driving.

The first consideration for this is how car insurance premiums are calculated, which is chiefly dependent on a driver’s risk profile.

This risk profile is a cumulative assessment that determines how statistically high a driver is to be involved in an accident – insurers will therefore charge higher premiums for drivers they regard as being a higher risk.

Some factors of the risk profile can’t be changed, for instance, statistically, drivers who are 26 years old or younger are less safe on the road, and men tend to be more aggressive on the road than women.

Therefore, young men younger than 26 will generally be considered at higher risk than women over 26 years old.

The factors that can be changed to adjust the risk profile include the type of vehicle being insured, the location of residence, driving history, and credit history.

Certain vehicles are higher risk than others, such as sports cars, high-end luxury vehicles, and brands that are popular choices for car thieves, and will receive higher premiums.

Living in an area with lower overall security will also increase premiums, such as in a rural area compared to a gated community.

Obviously, moving solely to obtain a better premium isn’t logical, but for those who are already planning to move, it’s a noteworthy consideration.

Credit and driving history are both factors that can positively or negatively impact the risk profile over time.

Drivers who rarely file claims and have a good credit score will receive better premiums, while those who frequently file claims and struggle to make payments will be regarded as being higher risk.

Besides the risk profile, several other steps can be taken to reduce car insurance premiums.

Tips for lower premiums

There are various steps South African drivers can take to reduce their monthly car insurance payments.

One of the best ways to get a lower premium is to conduct research and compare quotes for insurance, as knowing which insurance is most suitable will help avoid cases where drivers may be overpaying.

Additionally, drivers should regularly review their coverage to ensure it remains the plan they need.

For instance, a review might find a comprehensive insurance plan on an older or second-hand vehicle that isn’t necessary and instead opt for more basic cover.

Bundling insurance policies is also an effective method for reducing overall costs, potentially lowering the total monthly premium by up to 20%.

Another method is to choose a higher voluntary excess, which refers to the amount a driver agrees to pay out when they make a claim.

Choosing a higher voluntary excess is a sure way to reduce premiums.

Drivers can also enhance the security of the insured vehicle by parking in secure areas or installing features such as a tracking device or an anti-jamming system.

These could potentially reduce premiums by making the vehicle a lower risk in the eyes of insurers.

Finally, drivers should avoid making claims where possible.

If a driver experiences minor damage, it may be worth paying to have it fixed personally rather than filing a claim.

The more frequently a driver files claims, the more their insurer will see them as a risk and charge higher premiums.

These steps may not produce instant results, but in the long term will help bring down a driver’s premiums.