In some countries it is required to have a car insurance policy, in countries like South Africa however, it is not. It is still recommended to have some type of car insurance policy, whether your country’s law requires it or not. Think about it this way, what would happen if you crashed your car into someone else’s car or property? Would you have the extra funds to pay for the damages? If you had an insurance policy during the time this happened, it wouldn’t have caused you any financial worries.
There are several different car insurance policies that you can get which will determine the type of cover you have and also the monthly premiums you will have to pay. The three main policies are:
- Third party cover: This policy will cover damages to the property of a third party’s car or other property that you may have caused. If they require any medical treatment, their medical bills will also be covered by your insurer.
- Third party with fire and theft: This policy will include third party cover as described above. Your vehicle will also be covered in the event of theft or fire. Accidental damage to your car will not be covered.
- Comprehensive cover: This insurance policy covers your vehicle in the event of accidental damage, as well as theft and fire (or any other type of natural disasters). Third party cover is also included.
By looking at the above options, you will notice that the third party cover will cost the least. This is ideal if you do not drive an expensive vehicle, but want to cover a third party in the case of an accident. The comprehensive option will cost the most out of your pocket but will cover you in most events.
There are other things you can do to reduce your premiums as well:
- Combine your household and vehicle policies, as bundled insurance will cost you less.
- Increase your excess amount to reduce your monthly premiums. Do this only if you can afford to pay the excess when you submit a claim.
- Install security devices into your vehicle to reduce your risk to the insurance company.
- Park your vehicle in a safe place during the night and day.
- If you drive less, the insurer will see you as a lower risk.
- Get an advanced driving diploma.
- If your vehicle has a tracking device installed your insurance provider can monitor your driving. By pulling away slowly, keeping within the speed limits, and braking slowly, you will not seem like a reckless driver.
- Combine you and your spouse’s policy to ensure your premiums are kept minimal.
- If you have specified drivers that are covered in your policy, it will cost you less than if anyone with a license is covered when driving your car.
- Pay your premiums on a yearly basis to get a discount.
These are just a few things you can do to save on premiums, but it will differ from company to company. Some companies take into consideration your profession, age, credit record, and gender as well. The best option would be to speak to a representative from your insurance company to determine what they look at when assessing your risk.