Finding Short Term Car Insurance
Short-term car insurance will be expensive due to high risks, especially in places such as South Africa. Knowing how to lessen the fees will help lead you down the correct path.
Industry experts cannot ignore that South African roads are increasingly dangerous. The country is often a leader in traffic injuries and fatalities. The privilege of driving is constantly being extended, even to those who are not qualified drivers.First, let’s examine what is driving the costs. Car insurance risk is the major culprit behind higher short-term insurance premiums.
As carmakers continue to upgrade their offerings, prices reflect those gadgets, leather seats, on-board computers and more. As car prices go up, so must the cost to insure them. Younger drivers have always been viewed as a higher risk. Drivers aged’-30 historically pay the highest rates.
In the homeowners and household insurance market, the main influencing factor is fraud. Some estimate are that six to 10 percent of short term insurance claims are fraudulent. That amounts to more than R2 billion each year.Insurers must also consider car theft and hijackings as they calculate their premiums. The latest statistics show a decline in thefts, but the rate of hijackings continues to rise.
Now, how can you overcome these factors for your own personal situation? Even though you have no control over the number of fraudulent claims, you can keep their effects from impacting your premiums. Try making the offer to your insurer to submit to a polygraph test each time you submit a claim. Many will offer a substantial savings on your premium in return for your honesty.
For car insurance, start by increasing you excess as this can lower your premium. Take this into consideration as you gather quotes. Also, be sure you can afford to pay the excess amount you choose in the event of a claim.
Keep a clean driving record. The fewer claims you have, the less risk you represent. If you already have a sketchy driving history, research driving courses offered by automobile manufacturers and the Automobile Association. This can help offset a negative history. This is also an option for good drivers. Most insurers will consider reducing your premiums if you attend and pass one of these recognized courses.
And, if you live in a high-crime area, consider moving. This can reduce both your car and homeowners insurance rates. Adding security devices can help as well. Anti-hijack devices and global tracking systems are good investments for this purpose.
The cheapest insurance is not always the best. Be sure the policy you choose provides adequate cover for your needs at a price you can afford.Finally, shop around for the best insurance rates. But be smart.
Tom Martens is the content syndication coordinator for Carinsurancesa.co.za. South Arica’s leading car insurance portal.
Tags: Auto Insurance, automobile insurance, car insurance, cars, finance, insurance, Money, motor insurance, Motor Vehicle Insurance, Vechiles, vehicle insurance
