For many the excitement associated with buying a new car can make them forget about the financial realities associated with having a car. There are various costs such as monthly finance installments, costs of insurance, petrol and maintenance that also need to be considered when budgeting to purchase a car.
Due to the harsh economic conditions, some people resort to cancelling their car insurance and drive around without any cover which may have disastrous results. This is according Wesbank head of brand and communications Rudolf Mahoney who said that the issue for some buyers is how much they can afford.
“Fluctuating fuel prices, interest rates and other living costs, people are trying to keep their budget in line. Many consider canceling their comprehensive insurance to afford other expenses,” said Mahoney.
He added the risk of not having insurance can be very costly, if you happen to get into an accident.
Instead of cancelling your insurance policies, people can use the following tips from WesBank to assist in making their insurance premiums more affordable:
- Check the canceling value of your car against the amount you are insured for – contacting your insurer can help adjust your premium in line with the market value of the car to account for depreciation.·
- Opt for a higher excess amount – doing this reduces your monthly premium, but remember that if you have an accident the pay -in amount for repairing your car will be very high and costly.
- Install a tracking device in your car – this helps to lower your insurance because you have added another layer of security to your vehicle. Once you have a tracking device installed inform your insurer and request a revised quote.
- Go for a certified, advanced driving course – these courses make you a safer driver and your insurance provider is likely to view you as a lower accident risk.
- Don’t claim too often – If you have a high claim history, this will result in higher premiums. Claiming for minor damages, such as stone chips or parking lot dings will drive up your premiums.
- Tighten your vehicle security – keeping your car in a locked garage, orguarded basement, will keep it more secure. Insurance companies view this as a low risk when it comes to vehicle theft.
- Always update your personal details – not only is this a requirement to maintain a valid insurance policy, but if you’ve moved to a safer neighbourhood with 24-hour security facilities it will assist in dropping your insurance premiums.
- Combine your car and household insurance – a joint policy that covers both your household goods and car can result in a more affordable monthly premium for your comprehensive insurance policy.
- Compare comprehensive insurance quotes – it is always a good idea to look around and compare insurance quotes to find the most affordable comprehensive insurance for your budget. If you think you are paying too much phone around for a few quotes and ask your current insurer if they can match or beat the offers you receive.
