The current data indicates that around 65 percent of South African drivers are without auto insurance cover and this is really alarming situation against the remaining 35 percent drivers who have purchased the auto insurance cover. So, what are the reasons responsible for the people not to make at least minimum auto insurance cover?
We will start with a look at the different types of insurance. There are three basic types of insurance in South Africa.
The minimum cover is Third Party. This covers your liability (costs) if you damage someone elses personal property in an car accident. This includes other cars or structural property that may also be damaged.
You also have the option of buying Third Party Fire and Theft which would cover incase of any damage to your vehicle by fire, theft or attempted theft.
Comprehensive Cover is the recommended cover for most South Africans. It includes Third Party Fire and Theft and also covers damage to your own vehicle in an accident that is deemed your fault. It also includes additional coverage such as extending cover when you drive someone elses car.
Drivers working in South Africa can obtain vehicle insurance options that can address the unique needs of operating a vehicle in this area. Such options include motorcycle, off-road, comprehensive cover, and caravan cover.
Because South Africa is a high risk insurance environment, premiums can be high. But you can take some steps to lower your premiums.South Africa is often a world leader in traffic injuries and fatalities and the roads are becoming increasingly dangerous. Car theft and hijackings are also all too common.
Start by shopping around and comparing quotes. It is easiest to research your options online, and you may also get a discount if you purchase your policy online depending on the company you decide to work with.
Drive safe and save on your premiums. Claim-free years should earn you rewards from your carrier. If not, scout for companies that would offer value rates to you.
Examine your excess amount. The higher the excess, the lower the premium because you are responsible to pay the excess in the event of a claim. If you can afford it, raising your excess amount will help you save in the long run.
Are you an owner of an expensive or high performance vehicle, if so you will end up paying more for premiums. These luxury vehicles attract high rates to insure as it is expensive to replace or repair. Keep in mind when buying a car that insurance premiums adds to the value of owning it.
Insurance companies often have minimum security requirements for the vehicles it secures, so if you add security devices that exceed the minimums, you could receive a discounted premium.
If you live in a high crime area, your car is at greater risk for theft or hijacking. Consider moving to get lower premiums. You can also receive a discount if you park your car in a locked garage or behind locked gates overnight.
Don’t be afraid to negoiate a deal with your insurance company, because they are very interested in keeping your business and willing to work out a deal with you.
Tom Martens is the content syndication coordinator for Carinsurancesa.co.za. South Aricas leading car insurance portal.
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