Get peace of mind with cheaper car insurance

With increasing financial pressure in the volatile South African economy, finding ways to save money for yourself or your family is more necessary than ever. Luckily, small changes to your budget can give you peace of mind and relieve some of that financial burden.

One of the easiest ways to do this is to find cheaper car insurance that still offers quality cover. Just because you find more affordable insurance doesn’t mean you have to sacrifice your peace of mind. As long as you know what kind of cover you need and diligently compare car insurance options, you can make a big difference to your budget.

Here are our top tips for how you can lower your car insurance premium or get cheaper rates without too much fuss.

1. Compare car insurance brands

Back in the day, finding out which insurer offered the best benefits at the most affordable price was a lot trickier. Nowadays, sites like hippo.co.za make the search a breeze. There's no commitment necessary and it only takes a small amount of time. You can compare insurers and options easily and make sure you aren't paying more than you need to.

 

2. Consider a higher excess to reduce your monthly premiums

Excess is the amount of money you will need to pay from your own pocket when you make a claim. Many insurers will allow you to raise your excess in order to reduce your premiums. Having a high excess amount is, of course, a risk, but it can save you on monthly premiums. If you go for a high excess, we recommend you save up that excess amount and keep it aside should something happen and you need to claim.

 

3. Change the value of your car insurance

Did you know your car can be insured for different values? The lower the value, the less your car insurance will cost you. These include the retail value, the trade-in value, and the market value, which is an average of the retail and trade-in values. All of these values can be adjusted based on your car's condition and mileage. Just bear in mind that, should your car be written-off or stolen and not recovered, if you've insured it for a lower value, your payout will be lower.

 

4. Reduce risk factors

If you're at a higher risk for theft or accidents, your premiums will be higher. You can't change factors like your age or how long you've had your driver's licence for, but here are a few things you can try to do to lower your risk:

- Park in a locked garage.
- Move to a low-crime area.
- Drive a car with extra safety and anti-theft measures.
- Drive carefully and conscientiously to build an excellent driver safety history.
- Be honest with your insurer.
- Take an advanced driving course.
- Move closer to work. Less time in the car means less risk of an accident.

 

5. Combine home and building policies

Many insurers offer a discount if you insure multiple items under their umbrella, such as car, home, and buildings cover. It's also a lot easier to manage all your plans with one insurer rather than managing multiple plans with different providers.

 

6. Improve your credit score

We went there. 'Credit score' is not a curse word. Many of us may have terrible associations with the phrase, but your credit score can benefit you. If you take measures to use credit wisely and improve your score, you'll be seen as a lower risk, which can lower your car insurance premiums. That's one more reason to pay your monthly bills and premiums on time and to make sure you always have money available for your debit orders.

 

7. Compare insurance options yearly

It may seem silly or like a waste of time, but comparing your insurance with other options out there at least once a year can save you a lot of money, because your credit score and claims history may change. Lastly, the value of your car could change, which can lower your premium.

 

Give yourself some peace of mind by applying our easy tips for saving money on your car insurance. This year, you can stress less and save more without too much effort. Start today by comparing car insurance quotes on hippo.co.za.

 

Prices quoted are correct at the time of publishing this article. The information in this article is provided for informational purposes only and should not be construed as financial, legal, or medical advice.