No matter where you are in the world finding insurance that is suitable to your needs is not an impossible task. In shopping for car insurance, you need to know what the policy will cover and what you can do to save on your payments and premiums.
Third Party Fire and Theft adds to the minimum by including cover for damage caused by theft, attempted theft and fire. Comprehensive Cover includes all of this and pays to cover damage to your own vehicle in an accident that is your fault.You can choose from three basic types of car insurance cover: Third Party, Third Party Fire and Theft and Comprehensive. Third Party is the minimum cover and pays for damage to other people’s property caused by an accident that is your fault.
Comprehensive Cover is the most expensive, but it provides the most benefits, and is really the type of insurance most South Africans should have to completely cover their risks. Now that you know what you can buy, let’s examine ways to get that cover at the best price. Here are ten ways you can reduce your insurance premiums. They may not all work for you, but everyone can find something that will work.
It’s easy to do this research online or through a broker. You can also get a discount if you purchase your policy online. Check with individual companies for this option. First, shop around and compare quotes. You can find substantial savings just by taking this step to educate yourself about your options.
If you can afford it, raise your excess amounts to save money in the long run. Just be sure you can pay the excess when you file a claim.Each policy comes with an minimum excess amount. This is the amount you will be responsible to pay in the event you file a claim.
Safe drivers benefit in the form of lower premiums. Each claim-free year may qualify you for a discount with your current insurer or earn a better rate with another company.
Whenever you are looking at insurance companies always consider the different prices. Higher performance and expensive cars always are a higher cost due to their risk profile and expensive parts. When you are shopping for a car, include the insurance premium in your budget.
Living in high crime areas will increase your rates due to there being a greater possibility of your vehicle being stolen or hijacked. You should greatly consider moving to a better neighborhood, not only to save money on premiums, but for greater personal safety.
You could get a discount if you park your car in a locked garage or behind locked gates overnight. Keeping your vehicle off the street at night reduces the risk that it will be stolen or damaged, therefore reducing your premium.
You can add security devices such as gearlocks or global tracking devices that exceed the minimum requirements and receive a discount.Most insurance companies will have minimum security requirements for the vehicles it insures.
The number of people you let drive your car is also a risk factor. If you keep the number of allowed drivers at a mininmum it helps the insurer calculate your risk factor better in turn lowering your premium.
Don’t be afraid to negotiate. Many insurance companies are flexible about their premiums and will be willing to work with you in order to earn your business.
Tom Martens is the content syndication coordinator for Carinsurancesa.co.za. South Arica’s leading car insurance portal.
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