Why is car insurance for new and young driver’s car insurance so expensive?
They always say that experience is the best teacher. When it comes to experience behind the wheel new and young drivers certainly pay for it. Figures have it that new drivers are more prone to accidents. Which is the reason why their insurance can be a little bit costly? To be precise about a quarter of 17 or 18-24-year-olds have a crash within their first 2 years of their driving.
When a valuation is carried out on an actual person, it’s much harder for companies to decide what kind of driver they are. Obviously, insurers cannot evaluate every single detail about a customer, so they have to ask for top-line information and base the premiums generated by statistics and facts.
It is also important to note that young male drivers pay a lot when it comes to insurance. Reason being that they are considered to be more reckless drivers when compared to women. You might notice that women actually pay less or get better deals of insurance than males. Statistics has it that a larger percentage of male drivers have had more accidents than women.
For young drivers in South Africa, you might even discover that even if after getting an insurance package you are restricted from bonuses as you would not have reached the required years to receive those benefits.
Is a black box policy a good idea?
You might be wondering what a black box policy is. Well with the technological advancement around across the world South Africa insurance companies have managed to keep up with times. Black box policy or also known as the telematics policy this is when a small device is fitted on your car. Or simply download an app on your phone that screens your driving habits. That app will record whether or not you are a good driver. Your insurance company keeps records of this data. If you happen to be then so are you guaranteed to get premiums that are cheap.
Can I save money by adding another driver to my policy?
As insurance companies, we try to make sure that all our customers are well accommodated for and get the best packages they could avoid. This is why means and ways are being suggested so that the young drivers are also accounted for. Yes, it is possible for another driver to be added to a policy to reduce premiums. Not just any driver but the driver has to have experience and a clean driving record. The reason why your premium might be cut down by adding another driver is simply the fact that you will drive less, and the chances of getting into an accident are reduced.
Should I opt for a higher voluntary excess?
Voluntary excess this is when you set the amount of excess you’re prepared to pay. This voluntary excess is one way many people are able to lower the cost of their insurance. When you get a car insurance quote, it’s worth looking at how changing the voluntary excess affects your price, and choose an amount that you’re comfortable with. But remember that, if you make a claim, you’ll have to pay both the compulsory and the voluntary excess.
What types of cars are available for drivers under 21?
They are three basic covers. The choice is determined with what you are able to afford.
Comprehensive; Comprehensive insurance is a cover or a rather a full cover that gives protection to a damaged vehicle or stolen. It offers protection to vehicles that have been in an accident but not in a collision. A comprehensive policy gives protection from natural calamities which is not in your control.
Third party; it covers you to any damages you cause to other people and their properties. Ultimately it bids cover against any permitted charge third party when you are at fault.
Third party theft and fire; insurance of this type cover you in the event that your car is damaged by a fire. But then again in such cases, you will first have to report to the police so as to get a crime number that you will reproduce to the insurance company. This could be accidental or the result of firebombing.
What about any practical tips to cut on car insurance
If you had given up as a young driver to get insurance don’t! As CarinsuranceSA.co.za has got you covered and has other means you can reduce your premium cost!
The beauty of technology saves us all once again! Security can be a bonus to the insured because if you also make efforts of risking the chances of your car being harmed you have fewer costs to worry about. Of course, you have the luxury of insurance making sure that your car is safe but extra security never hurt anyone but instead costs you less. I am talking about the immobilizer. This device ensures that your car is safe and has fewer chances of being stolen.
Avoid unnecessary upgrades on your car. This might seem as a mood killer for the young driver as they still have that edge to advance their car putting mags and so on. But this will only drain your pocket and cost you more.
Good driving is always the golden rule. Maintain the speed that is required is essential. Not doing so and being a bad driver might result in penalty scores that might trigger the amount of your premium to even rise.
Paying your insurance at once can really help. At times paying in installments might be costly as they might come with charges. The advantage of paying at once is also the fact that you get a discount. The other thing is this might help you to forget about money worries for a while. Whatever happens, you are guaranteed that you can even get extras from the insurance company.
Mileage limit is also essential. The less time you spend on the road driving the fewer risks of accidents that you have.
Apparently, there is a new scheme whereby if you produce good grades in school, that is they have a target you should reach you are bound to get a less expensive premium than the one you were supposed to have.