Save on Car Insurance
There’s something about paying car insurance premiums that just get the blood pressure rising. Dinner party conversations inevitably touch on the high excess costs and premiums that are increased every year without any apparent corresponding benefits. Car insurance is a necessity, in one form or another, it is not an investment. Car insurance is there to safeguard you against the possible risk of having your car stolen, or being hijacked or involved in a serious car accident. Unfortunately in South Africa these risks are all very real.

Give me the good news
The good news is that there are a number of ways you can save money on car insurance.

1. Consider your needs
First of all, do a needs analysis on your car insurance. If you drive a small runaround that you only use to do the shopping, your needs are a lot different compared to that a travelling sales representative. You can reduce your coverage on older cars by reducing your insurance from comprehensive to 3rd party only or limited liability car insurance. You should only consider this if the value of your car is low and is fully paid off.

2. Do your homework
Understand the jargon and terminology used in the car insurance industry, the levels of insurance available to you and the various add-ons and extras that will help you customise an insurance policy to your personal specifications. Car insurance for women, for instance, allows you to take advantage of a number of special deals, like roadside assistance.

3. Shop around
You can do a lot to save money on car insurance by shopping around and / or using a broker. Use an online comparative car insurance web site and ask for at least three different quotes. You can get an online quote from different car insurance companies at the click of a mouse button. Compare apples to apples, see if the products all meet your needs.

4. Increase your excess
Accepting responsibility to carry a higher excess will lower your car insurance premium. This is especially useful if your car is of little value should it be written off; for more expensive vehicles, make sure that you will be able to pay the increased excess in case of a claim.

5. Become a more sensible driver
Not having to claim on your car insurance will save you money. It will save you from having to pay the excess and if you have three years of not claiming you will also qualify for lower premiums. Then we are not even talking about the trauma and trouble that accompany an accident.

6. Consider driving a cheaper car
During difficult financial times such as we are experiencing at present you may have to ask yourself if you really need that sports model. Driving a fast, modified car immediately means higher insurance premiums; you can save a lot on insurance if you drive a more modest car. There are other things in the word to enjoy too!

7. Proactively protect your car
Park your car in a lock-up garage, use anti-theft devices like immobilisers and gear locks; just make sure that you use devices that are approved by your insurer. You will qualify for lower premiums if you do; remember to advise your insurer if you upgrade your anti-theft devices.

8. Negotiate a top deal
Most insurance companies will offer you a better deal if you insure your car and household goods together. Negotiation is a skill anyone can master; don’t just accept the price they quote you, barter with the insurer, they want the business and it’s a competitive market out there.

9. Does your insurer know you?
Many things can lower your insurance premium, if you turn twenty five, go on pension, marry—all these can reduce your premiums, keep your insurer up to date with major changes in your life.

10. What is the market value of your car?
Most insurance companies insure cars at their current market value. Your car’s value reduces every year and you should advise your insurer to reduce your car insurance cover accordingly. If not, you are just wasting money.