Car Insurance Money Savers

Everyone wants to save a few extra Rands. And if you can save money on your monthly car insurance premium, why not?

With so many responsibilities that need money every month, such as transport, rent, groceries, school fees and more, it makes sense that everyone wants to save on insurance.

Is there a way to save money on your insurance? Read more to find some of the most frequently asked questions on the internet regarding “cheap vehicle insurance”.

How can I save money on car insurance?

Car insurance can be expensive, depending on your level of risk. Although this may feel like an added financial burden to your pocket, it goes without saying that it is wise to have an insurance policy. If you are looking for affordable car insurance, see below:

  • Do your research
    It's always a good idea to compare quotes from various insurance companies and establish which option suits your budget better. However, sometimes the cheapest option is not always the best. Comprehensive car insurance may be more expensive, but it provides you with more holistic cover as it protects your car against theft, damages as well as liability to third-parties. Third party insurance is much cheaper, and provides liability cover for any damage you may cause to the property of another person – however, damage or loss to your own vehicle is not covered. Always ensure that the company you are taking insurance from is reputable and that they are a registered financial services provider.
  • Consider an insurance “bundle”
    Some insurance companies may offer you a discount if you add multiple cars to your insurance policy or add home and contents insurance to your car insurance policy. Chat to your consultant and find out what options work best for you. A typical family with two cars could get at least 25% off on the cheapest car's premium and up to 25% discount on home contents cover if you choose to insure your vehicles and home contents with MiWay.

How can you get cheap car insurance in South Africa?

Vehicle insurance may be expensive, but there are ways you can save a few extra Rands each month.

  • Choose a car carefully – some cars have a higher risk of being stolen. Therefore, the insurance premium on that car will be much higher than that of a lower risk car. In 2019, BusinessTech published an article regarding the most hijacked cars in South Africa.
  • Get more security – if your car has an immobiliser or a car tracking device, this can lower your premium.
  • Drive less – some companies offer discounts for driving less. Speak to your insurer to see whether they offer their clients a discount based on your driving behaviour.

What types of car insurance are available?

There are several vehicle insurance options at your disposal.

  • Comprehensive" car insurance is the widest cover available and is the recommended option for all drivers. This insurance covers theft, hijacking, accidental, weather-related and intentional damage.. If you cause an accident, this cover also pays for damages incurred to the other vehicle.
  • Third-party, fire and theft cover provides cover for a vehicle affected by theft, or fire-related incidents. If you are responsible for an accident, it will also cover damages caused to the other car. However, repairs to your own vehicle will not be covered and will have to be paid out of your pocket.
  • Total loss" cover provides cover to clients when their vehicle has been declared a write off in an accident or if it has been stolen and not recovered.

What type of car insurance is affordable?

Third-party insurance offers a minimum level of insurance at a cheaper rate. The main reason why it is more affordable is that it covers the least amount of damages. Drivers who can afford to pay repair costs for their own car may choose to select this option, as third-party insurance pays for damages you cause to another vehicle only. If you select this type of cover, you must know that there are pros and cons to paying this cheaper insurance premium.

Does car insurance go down after your car is paid off?

Once your vehicle is paid off, you could see a decline in your car insurancepremium. This is mainly because the financier who provided you with vehicle financing is now paid off will not require you to have comprehensive cover any longer. Your premiums may reduce; however, it's not an automatic process. Give your insurer a call to find out what options you have.

Does car value affect insurance?

Yes, your vehicle's value can dictate and influence what you pay for insurance per month. Ensure that your car is insured for the correct value – retail, market, trade or a specially agreed value.

Retail value is the current selling price on the dealer’s floor as per the TransUnion Dealers' Guide. Market value is the average between the vehicle's retail and trade values. Trade value is the average price that a motor dealer will pay you for the vehicle as per the TransUnion Dealers' Guide. Specially agreed value applies to unlisted, vintage and collectors' vehicles, caravans and trailers where a valuation is given by an appropriate approved source.

What type of affordable car insurance can new drivers get?

Drivers who have recently obtained their licences are considered high-risk and are recommended to obtain comprehensive car insurance. Compare quotes from different insurance companies and find the most affordable option for you.

Does installing security features in my vehicle lower insurance costs?

The short answer is yes, it can. If you have added security features to your vehicle, your car insurance premium may be reduced. Some of these safety features could include a tracking device  or immobilisers.

Can I add or remove certain features without affecting my car insurance policy?

If you remove a security feature from your car, you should inform your insurer of it immediately. Removing a security feature could increase your insurance premium. For instance, if you took out  your policy while your vehicle had a tracking device, your insurer may have offered you a discount for this. However, once the device is removed, your premium may increase as the risk of not retrieving a stolen vehicle is much higher. It could also affect potential claims.

Is it cheaper to buy car insurance online or through a broker?

Some brokers could charge a minimal service fee to help you. So always ask up front how much will be charged to you. It may work out cheaper to buy car insurance online than through a broker or an agent, but some people prefer to work through a middleman. The best way is the method which make you feel more comfortable! Affordable car insurance quotes are easy to obtain online and require a minute or two of your time to fill in your details before an agent calls you back. Here's an easy way to apply for an online insurance quote.

Affordable auto insurance may be easier to have than you thought. Your best bet is to always read the t's and c's of your policy, ask as many questions as you can, and review your policy every few months to determine where and how to save.

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