Car insurance is necessary but can feel like an unnecessary extra amount coming off your account each month. Here’s a handy guide to getting better priced car insurance.
Car insurance falls, for most people, under the ‘grudge purchase’ umbrella: you need to have it, but resent the rands coming off your account every month. Unfortunately, if you’re under 25, you might find yourself paying a pretty penny for insurance.
The reason why insurance is so high for drivers under 25 is their lack of driving experience coupled with risky driving behaviour (e.g. driving faster than the speed limit) which is quite common among younger drivers. Experts have found that drivers are more likely to have an accident within their first year of obtaining their driver’s license: more likely than at any other time in their lives. There, however, are a few tips and tricks to secure a better insurance premium - like getting some insurance quotes on two on three car models on your buying shortlist before you sign an OTP. It's very possible that the cheaper car or the one you have set your heart on, could have a 30% higher premium because it is a hijack risk for example.
The Managing Director of Alexander Forbes Insurance, Gary Dombo, provided several ways for younger drivers to improve their chances of getting a lower insurance premium. These were:
- Obtain a defensive driving certificate. This lowers your chances of being viewed as a risky driver.
- Choose a car with less power (a lower kilowatt motor). Cars with powerful engines are considered more dangerous, and even more so for drivers under 25.
- Build up your driving history. If you regularly receive your no claims bonus, and have a proven good history as a low risk client, your rates will be reduced.
- Pay as you drive. Taking out a policy that limits your monthly mileage, means you’re less likely to be involved in an accident. This will also reduce your monthly premiums.
- Make sure your car is always secure. Park your car behind a locked gate at night.
If you’re over 25 and age isn’t a factor, here are some other ways to lower your insurance premium on your car:
- Shop around. Get three to five different insurance quotes to make sure you get the best offer possible..
- Bundle your policies rather than having various different policies with different insurers. Having your car insurance, your home insurance and your portable possession insurance all on one policy will likely earn you a discounted premium.
- Make sure you insure your car at its market value. Insuring your car for more than it’s worth is an unnecessary extra cost.
- Never duplicate a policy - two policies doesn’t mean twice the cover, in fact it often leads to a lower payout as you’ll only receive half the payout from each insurer.
- Another way to lower your premium is to install a tracking device. This will also improve your chances of recovering your vehicle if it’s ever stolen.
- Follow safe driving best practices, some insurers reward good driving in the form of a no claims bonus
By following this advice, chances of getting a better insurance price are far more likely.
For more helpful advice and actionable tips about buying a car, download this helpful guide to buying a new car.
