Insurers Do Not Want You To Know This: How to Pay Less for Vehicle Insurance?

Are you one of the millions of South Africans feeling the effect of an insanely high car insurance premium on your pocket each month, or are you one of many vehicle owners forced to choose between paying school fees or vehicle insurance?

Before the COVID-19 pandemic, Jack was already struggling to pay his debts. Working hard as an accountant in the city, Jack was the provider for a family of five. Over the years, Jack managed to cover all his debts each month, with no money left for savings.

But in 2019, Jack had to make some serious financial decisions when his employment contract changed from full-day to half-day. Jack lost half of his salary and could no longer keep up with all his debt payments, forcing him to cut various services that he could no longer afford. Unfortunately, car insurance was one of them.

As luck would have it, one year later, a thief stole Jack’s vehicle from outside his home. Not only did Jack become another vehicle-theft statistic, but he also became a ‘no-insurance statistic. Jack, a hardworking family man with an accounting degree, now had to rely on public transport.

Insurance is invaluable. Yet, around 65% of South Africans are driving without insurance.

Statistics show that South Africans are teetering on the edge of insolvency, with around 75% of household income used to service debt. In the same vein, the South African Insurance Association show that only 35% of on-road vehicles have vehicle insurance. That means nearly 70% of South Africans are driving without insurance.

Vehicle insurance rates have become a budget pain point for millions of South Africans like Jack. But South Africans can afford vehicle insurance. In fact, not only can South Africans afford car insurance, but they have the power to bring their premiums down.

Here’s how?

Compare comprehensive insurance quotes.

Industry experts say the trick to keeping premiums low is to check the market value of the car against the insured amount. After, compare quotes from different insurers to find the most affordable comprehensive insurance to meet the budget. Need a FREE vehicle insurance comparison quote from the top five providers to see how much money you could save? Use cover search.co.za and get a quote within minutes.

Maintain zero insurance gaps and keep good credit

While gender, age, lifestyle, vehicle model and price are significant premium influencers, another key to a lower monthly rate is to drive a comfortably affordable vehicle. Much like a medical cover, Providers also look at vehicle insurance history – and they dislike insurance gaps and are equally cautious of poor credit reports.

Consistency is essential to providers as research shows that consumers who effectively manage their credit responsibly have fewer claims. That means that South African drivers can reduce their monthly premiums by paying bills on time and nurturing their credit reputation.

The lower the risk, the lower the premium

Where we live, the theft risk of the area and personal history of claims all affect our premium. To reduce premiums—clean out the garage and get the car securely parked in it, rather than on the pavement. Don’t have a garage? Install extra safety and anti-theft devices because a safer car = less risk = lower premium.

Once installed, inform the insurer of any changes to the policy, and request a revised quote. Not only will a vehicle tracking device lower the comprehensive car insurance premiums, but it will also help police recover the vehicle if stolen.

Combine insurance and ditch the whistles and bells

Not all car insurance policies are equal. While some come with added services and benefits at no extra cost, others charge for the same service. That means before you sign the dotted line, ask yourself whether one needs all those add-ons as this will affect the premium.

Also, many insurers offer a reduction for policies that cover several types of insurance, like household and vehicle insurance. You may also receive a discount if you have more than one vehicle insured with the same provider.

So, why did no one tell South African drivers about this? Probably the same reason they never told Jack about sites like CoverSearch.

Compare Rates with at least 3 Providers to get the most savings.

CoverSearch is a FREE, no-strings-attached online tool that helps put South African vehicle owners in touch with the best insurer for their needs and budget. Millions of South Africans are shocked when they learn how easy it is, paying less for car insurance.

It’s true. Car Insurance is affordable.

Do not let high car insurance premiums force you to cancel your insurance as Jack did. Not only did Jack lose his car, but he lost all the money paid to his insurance provider over the years before cancelling his policy.

If only Jack had known the above tips, he could have reduced his rates. Jack, like millions of other South Africans, would not have to rely on public transport today.

Are you ready to save money? Then put CoverSearch to the test.

Here’s how you do it: