A recent study showed that South Africans are struggling to afford the cost of living, with a whopping 85.3% of our monthly income going to cover living expenses.
With so little wriggle room in our budgets, it’s more important than ever to cut costs where you can.
One place where you may be able to save is on your car insurance. Here’s how to reduce your monthly premiums without sacrificing essential cover:
- Shop Around for the Best Deals
It’s tempting to stay with the same insurer year after year, especially since you don’t have to reapply and go through all the paperwork of a new insurer. However, car insurance rates can vary significantly between providers, even for the same coverage.
Don’t stick with the same policy without first shopping around. You can easily compare prices online and see what option is the best one for you. Many websites provide free comparison tools that allow you to enter your details once and get quotes from multiple insurers.
- Increase Your Excess
Your excess is the amount you agree to pay upfront when making a claim. A higher voluntary excess can reduce your monthly or annual premium because you’re taking on more of the financial responsibility in the event of a claim. However, be sure you can comfortably afford the excess in case you do need to claim.
- Drive a Lower-Risk Vehicle
The type of car you drive plays a major role in how much you pay for insurance. High-performance vehicles, luxury cars, and models that are expensive to repair will usually come with higher insurance premiums. Insurers charge more for vehicles they consider to be at a higher risk for accidents, theft, or costly repairs.
If you’re in the market for a new car, consider choosing one with a high safety rating, low repair costs, and good anti-theft features and make sure to explore all the insurance options, such as comprehensive car insurance or third-party car insurance. Cars that are less likely to be stolen or involved in accidents will generally cost less to insure.
- Improve Your Vehicle’s Security
Installing security features in your car can help lower your premium. Insurers like to see that your car is as secure as possible, as it reduces the chances of theft or vandalism. Adding an alarm system, immobiliser, or tracking device can reduce your risk in the eyes of insurers, which could lead to discounts.
- Limit Your Kilometres
The less you drive, the less likely you are to be involved in an accident. Insurers often offer lower premiums to drivers who keep their annual mileage low. If you don’t use your car for long commutes or frequent trips, let your insurer know. You may qualify for a discount if you can limit your driving to a certain number of kilometres per year.
- Consider Telematics Insurance (Black Box Insurance)
Telematics insurance, also known as black box insurance, uses technology to monitor your driving habits. Insurers can track things like your speed, braking, and overall driving style. If you’re a careful driver, you could be rewarded with lower premiums.
- Bundle Your Insurance Policies
If you have more than one type of insurance—like home, pet, or life insurance—it’s worth checking if your provider offers a multi-policy discount. Bundling your insurance with the same company can often lead to discounts on each policy. It’s convenient to manage all your policies in one place, and the savings can add up.
- Don’t Make Small Claims
If you can afford to pay for small repairs or damages yourself, it’s often better to avoid making a claim. Frequent claims can increase your premium. This is because insurers see drivers who make multiple claims as higher risk, even if the claims are small.
Lowering your car insurance premium can free up a few hundred rands every month that you can use on other essentials. In this economy, every bit counts!
