Assess your needs
You need to decide what kind of car insurance you need. In South Africa, this means having to choose between:
- Comprehensive Cover – the most extensive type of cover, as it provides insurance for just about any eventuality.
- Third Party, Theft and Fire – similar to Comprehensive cover, this cover is less expensive. It doesn’t however insulate you from the costs of you being involved in an accident.
- Third Party – this is the cheapest type of insurance cover and offers the most basic cover.
You need to decide what kind of insurance you need as well as how best to tailor this to suit your individual needs.
Maintain good credit and a clean driving record
Insurers use credit scores as a tool to help gauge how risky a customer might be.
By maintaining a good credit record you will be considered to be a low-risk individual. This means that the insurance company anticipates that you will be able to service your monthly premiums without fail and that you are less likely to change companies often.
By driving well you may also benefit from car insurance savings.
Raise your deductible
Excess is the amount of money you must pay before insurance benefits begin.s
By increasing your excess amount you can reduce your premiums. It is important however to make sure that you can afford this. Make sure that you never raise your excess unless you’re confident that you’d have enough cash to cover it if you ever needed to make a claim.
Ask about discounts
Discounts aren’t always advertised so you need to ask how you might qualify for a lower premium. You may get discounts such as:
- Multiple-policy discounts
- Working in certain occupations
- Competing an advanced driving record
Use free online platforms to compare various car insurance quotes. You need to do this at least once a year.