Cheap car insurance
An understanding of the different vehicle insurance options available will help you to find cheap car insurance that is suitable to your needs and offers motoring peace of mind.
When shopping for any product, it is a good idea to compare the different options available. Choosing car insurance is no different, but there are a number of additional factors to consider, too.
What affects the cost of car insurance?
Two of the most important things affecting car insurance premiums are the level of cover chosen and the amount of risk to which your vehicle is exposed.
By choosing, for example, to take car insurance that only offers protection against liability for third party damage you will pay a lower monthly premium than if you select a more extensive car insurance product. This may be an appropriate choice if you have an older vehicle that has been fully paid off.
However, if you have newer or more expensive vehicle insufficient vehicle insurance may not provide the cover you need to properly manage your risk. This is because if your car is stolen or damaged you will have to pay a potentially significant amount to replace or repair the vehicle.
How do I lower my car insurance premium?
There are ways to reduce car insurance costs without compromising on the amount of cover. By reducing your risk exposure you can lower your premiums. That may sound complicated but it is actually quite simple. In general, the more chance that your car will be damaged or stolen, the more your insurance will cost.
Taking basic steps to reduce the likelihood of loss or damage can therefore lead to reductions in your premium. Your insurer will advise you on appropriate steps to take, such as installing satellite tracking systems.
Your premium will also depend on factors such as where you live and what car you drive. These may not always be practical to change, but are worth bearing in mind when, for example, choosing between a number of different vehicles.
Car insurance innovations
Talking to an insurance broker can really be helpful. A broker will provide you with specific, detailed information about reducing your premiums and choosing the right level of cover. Your broker may also recommend innovative car insurance products that are appropriate to your needs.
A good example is Pay As You Drive car insurance. This is a car insurance product where you pay by the kilometre, so you only pay for distances you have driven. If you do not drive large distances, this can be a simple way of saving on car insurance.
Pay As You Drive policies are calculated using satellite tracking, ensuring that your monthly usage is precisely recorded. As a further benefit, the tracking system will help recover your vehicle if it is stolen. This added security feature will also contribute to a lowering of your premium.
About the author:
Hollard are leading providers of insurance in South Africa. Hollard offers a flexible range of motor insurance products including pay as you drive car insurance.
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