Short-term car insurance will be expensive due to high risks, especially in places such as South Africa. Knowing how to lessen the fees will help lead you down the correct path.
First, let’s examine what is driving the costs. Car insurance risk is the major culprit behind higher short-term insurance premiums. Industry experts cannot ignore that South African roads are increasingly dangerous. The country is often a leader in traffic injuries and fatalities. The privilege of driving is constantly being extended, even to those who are not qualified drivers.
You will find that as more upgrades are offered on cars the price to insure those cars will also go up. And looking at history you will also find that younger drivers,’-30, will pay the most for their insurance.
Insurers should consider that car theft and hijackings when they calculate their premiums. Statistics show a decline in thefts while hijackings continue to rise. In the homeowners insurance market the main factor is fraud. Some estimate that 6%-10% of short term insurance claims are fraudulent, that amounts to more than $2 billion yearly.
It is possible to ensure that these issues do not impact your insurance situation. You may not have any control over other people making fraudulent claims, but there are steps you can take to ensure that they do not affect your insurance premiums. For example, you can offer to take a polygraph test whenever you submit a claim. As a reward for honesty, some insurers will give you significant savings on your premium.
For car insurance, start by increasing you excess as this can lower your premium. Take this into consideration as you gather quotes. Also, be sure you can afford to pay the excess amount you choose in the event of a claim.
Maintaining a clean driving record not only keeps you safe, but can also save you money. If your driving record isn’t as clear as it could be, you can attend a driving course offered by car manufacturers or the Automobile Association. This can help clear negative history. Driving courses aren’t just for bad drivers, however. A driver with a clean record can attend to possibly lower their insurance premiums.
It certainloy never hurts to install security devices. Not only will your rates be reduced, but your belongings will be secured. Devices that discourage car jacking, along with a global tracking system are wise choices to that end. If you can afford to do so, move out of neighborhoods known for elevated crime levels. Your car and homeowners insurance rates will decrease significantly.
Finally, shop around for the best car insurance rates. But be smart. The cheapest insurance is not always the best. Be sure the policy you choose provides adequate cover for your needs at a price you can afford.
Tom Martens is the syndication coordinator for Carinsurancesa.co.za. South Arica’s leading car insurance portal.
Tags: auto insurance, automobile insurance, car insurance, cars, Finance, insurance, money, motor insurance, Motor Vehicle Insurance, Vechiles, vehicle insurance