Drive down the cost of car insurance

It costs an arm, a leg and a rib or two to insure some high-risk cars, so get an insurance quote before buying. Already bought? Fear not: you can still knock a couple of precious rands off your insurance bill each month.

‘Make the effort to shop around,’ says Robyn Farrell, managing director of First for Women Insurance Brokers. ‘Different insurance companies target different types of customers, so you might find the best prices are available from a specialist car insurance company that understands your individual requirements.

Price shouldn’t be the only consideration. Read the fine print and make sure you know exactly what you’re paying for. ‘Some people spend less time reviewing insurers and quotes than they do choosing a new pair of shoes,’ she says. Signing with the provider offering the lowest rates is not always the best option. Look at other factors such as level of cover, client service and any value-added benefits.’

You could save money by combining your motor and household insurance. ‘Combination policies usually cost less,’ says Farrell, who also suggests insuring all the cars in your household with the same insurer as this may entitle you to a multi-car discount.

Security can make a significant difference to the bottom line too. If your car is locked securely in a garage when at home and is fitted with a tracking device and immobiliser, you may qualify for a substantial discount on the premium. Point out any security measures to your insurer, and check that you do get the discount.

It’s also important to build up a claim-free history. ‘When you claim, your premium will probably go up. So don’t claim for small incidents that you could pay for out of your own pocket, such as a cracked windscreen,’ she says.

Finally, ensure that your car is correctly valued by your insurer. Pop into a used-car dealer and ask them to look up the exact value of your car – it devalues every year, no matter how well you look after it. It your car is stolen and it’s worth Rl00 000, that’s all your insurance company will pay out – even if your premiums were based on a higher figure.