How is car insurance calculated?
Insurance companies use various factors when calculating car insurance. These include age, where you live, how often you drive and what car you drive.
The amount charged by an insurance company is a reflection of how likely they think you are to make a claim and how expensive that claim is likely to be.
In terms of age, younger drivers are likely to pay higher insurance costs. Research has shown that individuals aged between 17 and 25 pay the highest premiums.
If you spend more time on the road or if you work in high-risk areas, you can expect to pay higher premiums. On the other hand, if you work from home and you travel less frequently, your car insurance costs should be significantly lower. By using a car insurance calculator you are able to work out your insurance costs and to compare insurance quotes.
The more expensive car you drive, the higher the costs to replace it if it’s stolen or written off. The faster and more powerful the car, the more expensive your insurance costs will be.
Car insurance types in South Africa include comprehensive car insurance, Third party, fire and theft as well as third party only insurance. Before getting insurance, it’s important to know how much cover you need and what type of cover you should opt for.
Why you need to use a car insurance calculator:
A car insurance calculator is used to determine how much insurance coverage you need and what features are most appropriate for you.
It can also be a useful as a faster way of buying car insurance.
Online calculators may also help to work out the retail value of your car and you can use it to determine if your car is sufficiently insured to protect your investment.