Uphando Forensics

Ways To Reduce Your Car Insurance Premium


Did you know that there are around 12 million cars on South African roads and that 70% of those cars are not insured! During COVID people cam onto some very hard times and unfortunately had to cancel their insurance to save money. This puts these individuals at a very high risk financially considering the number of accidents, hijackings and thefts that take place daily in South Africa. So it is important that you cover yourself with insurance and we know how difficult it can be to pay your monthly premiums but there are a few ways that you can reduce your monthly car insurance premium whilst staying insured.

Insure your vehicle for the correct value
If you are driving an older vehicle you need to make sure that you are not over-insuring your car.

Don\’t duplicate insurance coverage
If your car insurance company offers free roadside assistance, then you don\’t need to opt for the same benefit from your medical aid provider for instance.

Increase your security
Your car insurance premium is calculated based on your risk profile. Your risk profile is based on a where you live, the type of car you drive and the security measures you have in place i.e is your car parked in a garage at night, is it behind a locked gate, etc.

Don’t claim unnecessarily
Keep your insurance for real accidents which result in unexpected large losses and avoid claiming for small things such as little scratches, etc. The more you claim your insurance premium will go up and it will also reflect the higher risk you pose to an insurance company.

Increase your excess
This may sound crazy but you could save some money on your monthly insurance premium by increasing the excess you pay when you claim. We all want to pay a lower excess when we do claim but opting for a lower excess could make your monthly premium more expensive.

Combine your policies 
By insuring your car and home contents, or your car and buildings insurance with the same insurance provider they usually give you a discounted rate.

Keep your details updated
If you now park in a more secure environment at night let your insurer know, it will bring down your monthly premium, or if you no longer use your car for business and now for personal let your insurer know.