Over the past five years, we’ve seen an increase in the price of car insurance in South Africa. While you may think that pricey car insurance is caused by insurance companies trying to make more and more money, that is not necessarily the case. There are various factors that contribute to how much you have to pay on car insurance, including economic conditions and inflation. Also remember that, for insurance companies to make a profit, they have to ensure they work on an acceptable loss ratio between pooled premiums and claims made while sticking to legislation and regulations. As an owner of a car, it’s important to have some insight into how insurance in South Africa works so that you can choose the best and most affordable car insurance for your car.
As a customer, you still have some control of determining how much you pay for car insurance every month. Here’s how you can pay less and get more:
- Choose a higher excess. By choosing a higher excess, your premium will go down. However, you must choose an excess amount you can afford should you need to claim from your insurance.
- Improve your car’s safety. Car insurance companies provide lower premiums for car owners with safer, more difficult-to-steal cars.
- Update your details. If any of your details change, make sure you update your details with your insurer to ensure your policy is valid. Doing so can also reduce your premiums, especially if you upgrade your home security, install a tracker on your car or make any change that will result in better safety for your car.
- Compare insurers. Get quotes from all the good car insurance companies in South Africa to make sure you are getting a great deal for car insurance.
- Choose an insurer that provides decreasing premiums. Your car decreases in value so, shouldn’t your premiums decrease too? King Price, for example, offers premiums that decrease, just like the value of your car.