With January being the month where there is more month left at the end of our money, many of us are on the hunt for bargains and ways of cutting costs where we can. Often times we make the mistake of cutting corners where we shouldn’t – and end up in a pickle when the times comes to get real value for money.
We all want affordable things, more so if it’s cheap – but is cheap always best?
Before you start cutting the wrong costs and chasing after cheaper deals, consider these options on how you can save on your insurance and still get the right value for money.
- Get your comparisons right
The most common mistake we make when comparing is thinking that “one size fits all” applies to insurance cover too. Beware of this mentality as needs differ from person to person, and insurance quotes are not created equally for every individual. There are different factors to consider for every client, and you don’t want to find yourself with inadequate cover that will cost you more in the long run than you bargained for. The cheapest option isn’t always your safest or best option. When comparing quotes, remember to consider all your cover needs, terms and conditions, affordability – compare apples with apples. - Choose your extras wisely
Having a pimped out car that attracts the right attention may sound like a good idea socially, but is it a good budget idea too? You may be able to afford the fittings of non-standard accessories, but before you make that swipe – consider the impact it will have on your insurance premium. Where possible, skip on the upgrades to your car and appreciate it in its naturally manufactured state… your pocket will thank you as your when your premium doesn’t increase. - Plan ahead and secure your premium
Paying per year and not per month may sound daunting and costly right now, but it’s actually cheaper to pay ahead. If you can afford to do so, pay for as far ahead as you can. - Consider your excess
The excess you choose influences the premium you pay. Consider increasing your excess to decrease your monthly premiums. However, it is important to consider if you will really be able to afford that amount should the time come when you need to cover the excess at claims stage. - Evaluate your cover needs
There are different cover options for you to choose from – make sure you choose the right cover for your needs and not just your pocket. The most expensive, and widest type of cover is usually Comprehensive cover – which covers your car and other vehicles in the case of an accident. You do get other, trimmed-down cover options, like Third-Party, Fire and Theft cover, but be aware when evaluating the type of insurance cover you need – think about the worst possible scenario before making the big chop. - Tighten your security
Increasing your car’s security not only limits or decreases your risk, it also decreases your premium. If you are looking to enjoy cheaper cover, consider adding extra security features such as alarms and tracking devices. Where you park your car also plays a role in determining your premium, so be sure to park it in a secure location where risk is minimised. If your parking location or security features have changed, remember to update your insurance policy too, as there is no way that your insurance provider will sniff it out unless you tell them. - Consider insurance when test-driving
Don’t let insurance be an after-thought – consider insurance while you are still shopping around for a car. This will aid you in not only making a decision on the type of car to drive away with, but it will also give you an idea of the premium you can expect when getting insurance. Whether new or second-hand, find out which cars have higher risk profiles than others. Purchasing a vehicle with a lower risk profile will have a positive effect on your premium.