How to Save Money on Your Car Insurance
If there’s too much month at the end of you money, and your fist thought on how to save money automatically jumps to “cancel your insurance” – STOP! That could be one of the biggest mistakes of your life. Without comprehensive car insurance, you’re putting yourself at risk for falling into a financial disaster. A small bumper bashing (without insurance) could hold you financially liable for up to as much as R 40 000.00 – so rather than saving a few hundred a month – you’ll have to fork out big time, or even have to apply for a loan to cover those costs.
Instead, let’s look at ways of getting your premium dropped month-on-month, so that you get a little more bang for your buck!
Save Money on Car Insurance
- Fit a tracker. Many insurers will reiterate that “it’s really not necessary” to fit a tracker – but this is a way for them to keep your premiums high. The installation of a tracker will have its own monthly fee, but it will definitely drive down the price of your monthly premiums.
- If you have had your license for a shorter period of time, the best way to negate the higher costs associated therewith is to enrol for an advanced driving course. You can’t magically increase the amount of years you’ve been a licensed driver, but you can improve your recognised driving skills with a course!
- Carpool or use public transport. If you can verify that your car is only used to commute between Gautrain Stations, and is parked there securely during the day, your premiums can be decreased.
- Safeguard your driving style. Avoiding highways, dangerous areas and steering clear of storms will be taken into account when compiling your risk assessment.
- Working from a home-based business means far less time on the roads; ensure that if this is the case for you, you mention it when doing your risk assessment!
- Consider where your car is parked during the day; by simply ensuring it is locked up, undercover or guarded can (and will) lower your monthly premiums immediately.
- Try to remain claim free. Yep! Steering clear of planned protests, keeping a safe following distance, avoiding driving in traffic or hazardous weather – and of course – never, ever drinking and driving – will allow for less room for error when it comes to the chances of being involved in an accident.
- Ever. Never ever ever use your cell phone when driving! While it might go undetected by some insurers, there’s a two-fold trick here; some new insurers have brought out apps –which monitor cell phone usage when driving. Also, if you are to be involved in an accident – the cause of which is distraction by your phone – you might forfeit your claim due to negligence. To be safe – use a Bluetooth kit or at the very least – headphones if you have no other choice but to take calls when driving. Texting will always be a no-go, the same for social media.
- Increase your excess if you want to save on your monthly premiums. Make an informed decision on those – which will suit you better. To save each month and pay a lump sum in the event of something happening, or pay more each month to save on the lump sum payable upon an incident.
- Bundle your car and home insurance together. You’ll pay far less overall – and if you are a business owner – try insuring through the same company as well.
- Your credit history plays a significant part in how much you’ll pay on your monthly premiums. Keeping your credit history clean and up to date will allow you the freedom of paying less each month.
How have you managed to save on your monthly insurance costs?
Looking for a broker to get your insurance sorted and do all the dirty work for you? Contact AB Brokers right here!