With inflation above the central bank’s target of 4.5%, South Africans are trying to make every cent count. One of those ways is by cutting down on their car insurance premiums. 

But how do you find a car insurance premium that’s affordable, but still offers you reasonable coverage? Below, we take you through 8 simple steps to find affordable car insurance:  

1. Understand the Types of Car Insurance 

There are three main types of car insurance in South Africa: 

Comprehensive Insurance: This is the top-level cover, protecting you against almost everything – accidents, theft, natural disasters, and more. It’s more expensive, but it’s also the most inclusive. 

Third-Party, Fire, and Theft: This type of insurance covers you if your car is stolen or damaged by fire, and it also includes cover for damages you cause to other people’s cars or property. 

Third-Party Only: This is the most basic form of insurance. It only covers damage you cause to other people’s vehicles or property. It won’t cover your car if it’s stolen or damaged in an accident. 

For older or lower-value cars, third-party cover or third-party, fire, and theft might be enough and will generally be more affordable than comprehensive insurance. 

2. Use Comparison Websites 

Once you know your budget and the type of insurance you need, the next step is to start comparing policies. There are several websites lthat can give you a range of quotes from different insurance providers in minutes. 

Comparison websites are great because you can compare apples with apples. Look for policies that fit your budget and offer the type of cover you’re after. And don’t just focus on the monthly premium – check what’s included in the policy and what you’d be covered for in the event of a claim. 

3. Look for Discounts and Special Deals 

Some insurers offer discounts if you meet certain criteria. For example, you might get a lower premium if: 

You install a tracking device in your car. 

You don’t drive often, or you mainly use your car for short trips. 

You’re willing to pay a higher excess (this is the amount you’ll need to pay out of pocket when claiming). 

You bundle your car insurance with other types of insurance, like home contents insurance. 

Ask insurance companies what discounts they offer – every little bit helps when you’re trying to keep your insurance affordable. 

5. Consider Pay-As-You-Drive Insurance 

If you don’t use your car much, you might want to consider pay-as-you-drive insurance. Some insurers offer policies where your premium is based on how much you drive. This can be a great option if your car spends most of its time parked in your driveway, as you’ll likely pay less than you would with a standard policy. 

6. Review the Excess 

The excess is the amount of money you’ll need to pay when you make a claim. Generally, the higher the excess, the lower your monthly premium. If you’re comfortable paying a higher excess in the event of an accident, you can often get a more affordable monthly premium. 

However, be careful not to set the excess too high – if something happens, you don’t want to end up in a position where you can’t afford to pay it. 

7. Check the Fine Print 

When you find a policy that seems like a good deal, don’t just skim over the details. It’s essential to read the fine print to understand exactly what you’re getting. Look for exclusions and limitations – some cheaper policies might exclude certain types of damage or have high excesses that make it harder to claim. Make sure you’re happy with what’s covered before signing up. 

8. Customer Service and Claims Process 

Affordability is key, but good service is equally important. You want an insurer that’s easy to deal with, especially when it comes to making claims. Look at online reviews or ask friends and family for recommendations. Some insurers may offer lower premiums but have a poor reputation for handling claims. Paying a little extra for an insurer known for good service might be worth it in the long run. 

By being savvy, you can shave down a few hundred rand on your car insurance every month. All these savings add up, especially when things are so expensive. Hopefully this gives you some wiggle room in your budget every month!

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