How to get the cheapest car insurance deal

Car insurance can add up to a hefty sum which eats into your income. It’s always best, however, to have insurance in place, and there are ways to minimise this cost.

We have a look at the factors that influence your premium, and we consider the questions you should ask your insurer to help reduce the cost, along with some final tips.

Tip: Get a car insurance quote today and find out how much you would have to pay.

Factors used to calculate your premium

According to Marius Neethling, personal lines underwriting manager at Santam Group, some people believe that vehicle insurance is beyond their financial reach.

However, Neethling notes, there are affordable solutions that can protect your vehicle and your finances.

The following factors are used to calculate your vehicle insurance premium:

• The make and model of your vehicle: The type of vehicle you buy plays a role in setting your insurance premium.
• Your self-payment portion: Insurers refer to this as the excess. The higher the excess you agree to, the lower your monthly insurance premium will be.
• The type of cover you choose: You can choose between several types of cover, depending on your circumstances.
• Your track record: Previous claims, such as the number and scale of accidents that you have been involved in, if any, are considered.

READ MORE: Does car insurance have a waiting period?

Questions to ask your insurer

“The first step is to always make sure you know what kind of insurance you need for your vehicle,” says Neethling. “Ask yourself whether you will only need the basics covered, or whether you’re looking for a plan that includes a bit more.”

Once you have chosen the insurance option best suited to your needs, Neethling says it’s possible to adjust your premium to suit your pocket. You can do this by asking your insurer the following questions:

1. Am I eligible for a discount if I combine my household and vehicle policies? Most insurers offer a lower premium if you combine your vehicle and household insurance under one policy.
2. Can my excess structure be changed to lower my monthly premium?
3. Are there any cover options on my policy?
4. Do you offer value-added benefits?
5. How flexible are you?

“Your insurer should allow you to change your cover according to your needs. If you want to increase or decrease your excess, or change from limited to comprehensive cover, you should be able to do this at any time,” says Neethling.

“Be sure to assess whether you will still be adequately covered if you have a lower vehicle insurance. Learn how to draw the balance between the premium payable and adequate cover,” he adds.

“Whenever you have to choose between insurers, choose the one that offers a policy structured to suit your needs and your pocket. It’s not necessarily the insurer with the lowest premium, but the one that makes sure you’re adequately covered at the most affordable premium,” says Neethling.

READ MORE: These factors will fluctuate your car insurance excess

Some further tips

According to Christiaan Steyn, head of MiWay Blink, there are three further ways you can ensure you get the best car insurance deal:

• Select the seamless: How easy is it to sign up? If your insurer has invested in an app or a website that provides you with a seamless and speedy sign-up process, this can also be an indication of how stress-free it may be to deal with the insurer in the case that something goes wrong.
• Third parties: Will your sibling, parent or partner drive your car from time to time? If so, be sure to share the details of this person (or at least an extra driver) on the policy so that you can have peace of mind.
• Annual adjustments: Check in with your service provider annually, rather than allowing your policy to roll over, without you noticing the renewal date.

Find out how much you’d stand to pay for car insurance.