Getting a car requires considerable amount of time, effort and money with so many factors to take care of including price, mileage, fuel efficiency and size. Once, the decision’s been made and the car’s home, you job hasn’t been done yet for there yet another major step to be taken. Yes, that is right – car insurance!
It is absolutely imperative that you consider car insurance policies even before you purchase a car because the type of car you choose will highly affect premium rates. Other than the condition of your car, there are a number of factors that car insurance companies use to determine the monthly premium insurance. Following are some tips that if you follow can help you get the best deal available in the car insurance market.
There are tens of car insurance companies in South Africa, all of which offer different rates for car insurance. The best way to select the right car insurance company is to get quotes from at least three different companies, analyze how the differences in the rates will affect you in the short and long run. And then make your choice. You can also ask a broker to do the same for you.
You can opt to increase your excess. The excess is the amount that you pay the insurance company in the face of an accident. This reduces the burden that car insurance companies face when they have to pay for their clients’ losses. Given this relief due to the excess paid, car insurance companies decrease their clients’ monthly premium.
Domestic use accumulates lower insurance premium. Whereas, when a car is used for business purposes car insurance companies charge higher insurance premium. You can choose to list your car as one that is used for ‘domestic only’ purpose. If there it is used very rarely for commercial purpose, mention the occasions at which it is used. Do so in a conservative way because the more the frequency of the business use, the higher your premiums will go.
Your driving record will heavily influence the way car insurance companies will calculate your monthly premium. The more accidents you have been involved in, in your recent past, the higher your premium will be. Also, the younger you are the higher premium rates will get. However, even if you are young, you can still create a difference by keeping your driving records clean.
There are many factors that make a vehicle more risky than others. Based on the aggregate effect of all the factors, the car is declared low or high at risk. Some of such factors include:
1. High performance
Those vehicles that have higher engine output, enhanced suspension and braking systems and other features that make it perform more efficiently than other cars are called high performance cars. Usually people who buy them for a richer experience, drive them at high speeds and in a not-so-careful manner. Such driving makes high performance cars susceptible to damage. On the other hand, cars with normal performance will have moderate risk of accidents.
2. Price
The more the book value of your car is, the higher the monthly premiums will be. Most car insurance companies cover damage costs based on book value while some might pay you the market cost as well. If you are wish to avail low premium bills, better buy a cheaper car.
3. The Exterior
At times some cars cost as much as other cars of the same brand do, but their exteriors propose otherwise. If your car’s exterior is too glitz and glam and suggests that it is worth for more than what it really is, your premium is surely going to move in the upward direction. That is so because the flashier a car’s exterior is, the more vulnerable it is to robbery.
The nature of locations that you frequently visit in a month including your workplace, your neighborhood and other venues heavily influence the premium rates that car insurance companies calculate. That is so because certain areas have higher risks of crime while others are relatively safe. Also, if you park your car during the day close to a place such as a construction site, your car is at high risk due to any material that may befall it. And during the night, if the car is parked outdoors as compared to a locked garage, premium rate, again is surely going to see an upward movement.
If your car has security devices that might help it get found in case it gets stolen or robbed, the premium rate will go down. So invest in such devices for once, instead of pay extra costs every month.
There can be more than one persons who can be listed on the ‘drivers’ list. The fewer, the drivers are, the lesser your premium will be.