Buying a new car can be so exciting that you might forget about the financial realities associated with owning a car. Other than fuel and maintenance, the cost of insurance premiums can add up every month.
You may be tempted at times to cancel your comprehensive insurance and drive around without any financial cover because the premiums are too high. Who couldn’t use the extra cash, right? Our friend WesBank strongly advises against this reckless move, and suggests ways you can reduce your insurance premiums.
- Check the market value of your car against the amount you are insured for – An annual call to your insurer can help adjust your premium in line with the market value of the car to account for depreciation.
- Opt for a higher excess amount – This reduces your monthly premium, but if you have an accident, the pay-in amount for repairing your car will be very high and costly.
- Install a tracking device in your car – This helps to lower your insurance because you have added another layer of security to your vehicle. Once you have a tracking device installed inform your insurer and request a revised quote.
- Go for a certified, advanced driving course – These courses make you a safer driver and your insurance provider is likely to view you as a lower accident risk.
- Don’t claim too often – Having a high claim history will increase your premiums. Don’t claim unnecessarily for minor damages, such as stone chips or parking lot dings.
- Tighten your car’s security – Keeping your car in a locked garage, or guarded basement, will keep it more secure. Insurance companies view this as a low risk when it comes to vehicle theft.
- Always update your personal details – Not only is this a requirement to maintain a valid insurance policy, but if you’ve moved to a safer neighbourhood with 24-hour security facilities it will assist in dropping your insurance premiums.
- High performance cars will attract higher premiums – Faster vehicles are naturally seen as being driven by more enthusiastic drivers, who carry an increased accident risk. Keep this in mind the next time you’re considering an upgrade.
- Driving experience counts – Drivers who are younger and have less driving experience will be charged higher insurance fees. The key here is to build your driving experience, while driving a vehicle that you can comfortably afford and insure.
- Combine your car and household insurance – A joint policy that covers both your household goods and car can result in a more attractive and affordable monthly premium for your comprehensive insurance policy.
- Maintain an uninterrupted insurance history – Cancelling your insurance will introduce gaps into your coverage history. A more complete picture of your insured history and claims can lead to a lower premium.
- Compare comprehensive insurance quotes – It is always a good idea to shop around and compare insurance quotes to find the most affordable comprehensive insurance for your budget. If you think you are paying too much, phone around for a few quotes and ask your current insurer if they can match or beat the offers you receive.
Source: WesBank. Image: Pixabay