Car Insurance Calculator | Auto and General
motor
With the current tough economic times, many people are looking for ways to reduce their monthly costs. With their car insurance premium being one of them. Instead of cancelling your car insurance altogether, consider the below options for lowering your monthly premiums:
- Check the current market value of your vehicle against the amount it is insured for, it might help to adjust your premium to account for the depreciation of your car.
- Opt for a higher excess amount. However, while this will decrease your monthly premium, you will be liable for paying a higher amount for repairs should your car be in an accident.
- Don’t claim for small incidents. Claiming for minor damages, like scratches or windscreen chips, will increase your premium. If you can, rather pay for these smaller expenses out of pocket.
- Install a tracking device in your car. Adding an additional layer of security onto your car will help lower your monthly premium. However, you also need to consider whether the cost of the tracking device offsets the savings on your car insurance.
- Update your personal details. If you’ve moved to a safer neighbourhood, have higher security in your home, or aren’t traveling as much, it’s important to let your insurer know as these factors can lower your premiums. This also goes for your marital status.
- Combine your car and household insurance. Bundling your vehicle insurance with your household insurance can often result in a more attractive and affordable monthly premium.
- Avoid high-performance cars. Naturally, high-performance cars come with higher premiums due to their increased accident risk and high repair costs. Keep this in mind when considering a new car. Choosing a safer car (that is less likely to be stolen) is a better option if you want to keep your insurance premiums low.
- Always keep your car insured. Gaps in your vehicle insurance history will increase your premiums when you do decide to take out car insurance again.
- Use a car insurance premium calculator to compare different insurance options to see whether there are any other suitable policies that are more in line with your budget.
Is foregoing car insurance illegal?
Car insurance is not a legal requirement in South Africa unless the car was purchased with a loan from a bank or other financial institution. Your bank or other financial institution will require you to take out a minimum car insurance policy, depending on your agreement.
Some South African drivers rely only on the Road Accident Fund cover. However, claims are often processed incredibly slowly, and the cover is limited. Due to the high accident rate on South African roads, it is advisable for all car owners to have a car insurance policy.
Will my premiums change if I move?
The area in which you live will influence your car insurance premium, which is why it’s important to update your address with your insurance provider when you move.
The reason for this is because different areas have different risk factors. For example, some suburbs may have a safer rating than others, which means that your premiums could be lower.
The security within your house will also influence your premiums. Such as whether you live in a secure complex or estate with a security guard or if your car is parked in a locked garage. The more secure your vehicle is, the lower your premiums will be.
Another factor to consider is the distance that you generally drive to and from work. If you move to a new house that is closer to your work, it means that you will be putting less mileage on your vehicle. Which could also lower your monthly premium.
Car Insurance with Auto & General
At Auto & General, we have various car insurance policies available, depending on the type of cover that you require as well as your available budget. Our experience and specialist knowledge have earned us a reliable reputation in the insurance industry, making us a trusted insurance partner.
For more information about our Car Insurance solutions or to get a quote, call us on 0860 11 1280.
