Are you overpaying for Car Insurance? Tips for Lowering Your Premiums

Is your wallet feeling thinner at month end? You aren't imagining it. With the cost of living increasing, essentials cost more than ever before, and we're all looking for ways to cut back.

One of the first things people tend to cut back on is services like insurance. Before you do this, it's worth considering whether you could save by switching to more affordable Car Insurance. The first step to doing a Car Insurance comparison? Exploring whether you're overpaying for your current insurance. Here's how to tell if you are and how Car Insurance from 1st for Women could fit the bill.  

4 signs  you may be overpaying for Car Insurance  

Here are some of the reasons you may be paying more than you should be for your insurance.

1. You haven't done an insurance assessment in a while 

Life can get very busy, and the average person has many things competing for their attention on any given day. It's natural to put off an activity like making insurance comparisons. You may have taken out insurance months or even years ago without stopping to check if it still meets your needs. During this time, a lot may have changed, such as your risk factors and coverage requirements. It's a good idea to reevaluate your insurance needs every time your lifestyle changes or once a year. Also, consider Comparing Car Insurance Cover to assess your needs. 

2. You're carrying more coverage than necessary

Unlike other assets you may insure (like your home or business), a car starts to depreciate the moment you purchase it. This means that your premiums shouldn't dramatically increase annually. However, expect the moderate annual premium percentage increase that your insurer would have communicated to you in advance. Keep track of these increases, and discuss any spikes with your insurer.  If you find your monthly premium is a bit steep, ask about discounted plans, like insurance bundling, that could decrease your premiums. 

3. You haven't informed your insurer about a lifestyle change

Many lifestyle changes can qualify you for a discount in insurance, but only if you inform your insurer about them. This can include a change in how often you drive, a move to a different location or an upgrade to your home and car security. Perhaps you commuted to the office daily but now work from home. Or you could have moved to a safer, gated neighbourhood or installed a tracking system in your car to deter criminals. Tell your insurer about your new circumstances.

4. You haven't inquired about available discounts and benefits

Get value for money with 1st for Women benefits, like Guardian Angels Lifestyle Assist. Often, you may qualify for certain discounts from your insurer for not claiming for several years or for being a longstanding loyal customer.

4 Tips for getting affordable insurance 

Now that you know whether you may qualify for a more affordable insurance premium, here are some tips to help you do so.

1. Consider upping your excess or deductible

You can quickly reduce your monthly insurance costs without compromising on your coverage by opting for a higher excess in exchange for a lower premium. Another option is choosing a higher deductible, which is the point at which your insurance kicks in. Bear in mind that doing this means that, should you need to pay for a claim after an accident, you'll need the excess amount ready and waiting to avoid delays in repairing your car.

2. Enquire about rates for bundling insurance policies

Insurers can offer discounts if you have more than one car insured with them or multiple insurance products, such as your Life Insurance or Home Contents Insurance. Consolidating all your insurance needs with a single provider can help you take advantage of this.

3. Become a better driver

Your premiums are calculated according to your risk level based on your driving. More than 800,000 road accidents[1] are reported in South Africa each year. These can be attributed to factors like speeding, reckless driving and distracted driving. Making a conscious effort to obey the rules of the road can prevent accidents, as can taking an advanced driving course that teaches defensive driving.

4. Improve your car's safety and security

A car equipped to withstand break-in or theft attempts or that can better avoid car accidents may qualify for a lower premium. Check with your insurer about what additions you could make to qualify for a reduction. A popular one is to install anti-theft technology or a tracking device in your car to increase its chances of detection and recovery should it be stolen.

The importance of reviewing your Car Insurance  policy

Keeping your insurance affordable is an ongoing effort. You will need to break down every service or value addition you pay for that may not benefit you anymore or that you will need in the future. Unlike many other products or services, insurance is fluid. Knowing your changing needs will allow you to adapt your coverage to prevent being over- or underinsured, which is money you won't be able to return. This proactive approach will also help you keep your insurance in mind whenever you drive, motivating you to cultivate better driving habits to reduce your premiums.

Get a Car Insurance quote

You could be enjoying a much lower Car Insurance premium by making a few adjustments or enquiries. But what happens when your current insurer can't offer you a better deal? 1st for Women can help you with this. All you have to do is contact us for an obligation-free Car Insurance quote for quality cover you can trust. 

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Sources:

[1] City Press: The critical state of road safety in SA

Disclaimer: The information in this article is provided for informational purposes only and should not be construed as financial, legal, or medical advice.