South Africans Started Shopping for Better Premiums When They Read This!

Is your car insurance lying idle? Hold on. You’re working from home now. So, remind us why you’re still paying high insurance premiums each month?

In the wake of lockdown, many South Africans are caught in the struggle to keep up with their monthly payments— and car insurance is the first thing that falls away when the going gets tough. As the need to drive decreases due to remote working, you may feel as though you’re overpaying your premiums or wonder why you’re even paying your premiums at all?

Take Joe Flanigan, for instance.

Joe, a builder with a white Honda bakkie, lost all his contracts because of COVID-19. Not only did lockdown prevent Joe from running his business, but the economic effect left many homeowners thinking twice about using Joe for their renovations. Joe did what any other desperate father of three would do and cancelled his car insurance. If only Joe could have foreseen the hailstorm that left his Honda, looking like it belonged on a pitching range. That day, Joe lost his vehicle and his business.

Over 30% of South African Vehicles are Uninsured

Car insurance is not a luxury. It’s an essential fiscal tool that can be the difference between a set of wheels and no wheels at all. In our downturn economy, South Africans do not want to spend more than they need to on car insurance, but just because less mileage means less risk, doesn’t mean you should scrap your car insurance altogether like Joe. With over 30% of drivers on the road without insurance paired with South Africa’s high motor vehicle accident rates and vehicle theft rates, motorists still can’t afford to not insure their vehicles.

Drive Down Monthly Premiums to Suit Your Vehicle and Wallet. It’s Easy!

Your vehicle is one of the most valuable investments you will ever make. That’s why having the right car insurance with premiums you can afford is essential. Even if you’re not financially challenged by lockdown, you will find yourself in a much healthier economy afterwards.

So, before you jump the gun and cancel your insurance altogether, rather drive down your car insurance premiums and save thousands of Rands annually—while still protecting your vehicle and your bank account.

Reduce Cover from Comprehensive to Limited Cover Temporarily

Does comprehensive car insurance, third-party cover or something in between better serve your needs? Car insurance is not an all-or-nothing scenario. For vehicle cover, there are plenty of options to choose from, so it’s essential to balance your financial and car insurance needs.

If you own your vehicle outright and you’re a low mileage driver with a lock-up garage, you can reduce your premium by changing the cover from fully comprehensive to third party fire and theft. And once you’re ready to go back onto accident cover, you can change your policy back to fully comprehensive again.

Increase Excess Payment In line with Reduced Risk

Your excess affects your monthly car insurance premium, and by raising your excess, you lower your monthly payments. It’s an excellent tactic to both reduce your payments and save you money. But, if you increase your excess, you must prepare to cough out that exact amount if you’re in an accident and make a claim.

Statistics show that accidental damage, theft and robbery claims decreased over lockdown. This means if you’re struggling to pay your premiums, and your vehicle is paid off and parked in a garage, now would be the time to raise the excess.

Increasing your excess will decrease your monthly premium, but you would have to lower your risk profile. You can do this by keeping your car inside a secure property with an electric fence, an alarm system, and a lockable garage.

Do Your Research with Comparison Sites like Mi.Finance

There are dozens of insurance companies, new and old, and large and small, vying for your business with multiple varied policy options, some with discounts. Because insurers determine premiums using different algorithms, the price differences can be huge, even for the same policy.

Mi.Finance get that it’s tough to figure out who’s offering what, which is why we tested the car insurance waters to bring you the best deals from multiple online insurance providers, all in one place.

Are you ready to save money? Then put mifinance.co.za to the test.