10 Tips to lower Your Insurance Premiums

We all want lower premiums or the best insurance deals we can get, however when getting quotes we always come across the same excuses for high premiums from the insurers. The parts aren't readily available, our age, the area we stay in or just that premiums are market related. Let's face it insurance is expensive and none of us want to pay for it. 

The AA stats show that up to 70% of vehicles on the road are not insured. So what does this mean for you, well should you have an accident even if it is not your fault, the chance of getting the other party to pay for the damages is very slim. That is why it is imperative to take out your own insurance. Take into account that should your vehicle be stolen or a total loss, if you do not have insurance, you will have to carry on paying for this vehicle regardless if it is financed. So what can we do to get the best deals when it comes to insurance ?

Below are a few tried and tested tips known to lower your premiums.

TIP 1 - COMBINE YOUR INSURANCE

Most insurers will give a discount on your motor premiums if you have your home contents or building with them as well. A vehicle is considered a high risk item. Therefore when adding home contents, the premiums on contents where the chance of a claim happening is low, assists towards the claim payments and premiums on a high risk sections such as motor.

TIP 2 - SHOP AROUND WITH A PROFESSIONAL

Direct insurers have made it easier to get insurance for everyone but this is not always the best option. firstly you will have to do all the searching yourself costing you time and money as you will call various different insurers. Using a professional broker to do this for you will allow you to get quotes from multiple insurer without you doing the running around.

Brokers also get paid from the insurers in by commission so it will not cost you extra to have a broker and you can be assured that you are getting a great deal with the correct cover. Some brokers do charge a fee to clients but you can ask them to remove this so check your policy for any additional fees and ask what they are for.

Would you use a lawyer or defend yourself? With basic knowledge of the law you could always defend yourself but it would always be best to use a professional and it is the same with insurance. A broker will do a needs analysis and make sure that you are aware of all the fine print in the policy wording and has your best interests at heart.

TIP 3 - UPDATE YOUR VEHICLE VALUES CONSTANTLY

Some insurers offer premiums that reduce constantly. This should be normal practice as most vehicle values reduce year on year and decrease substantially the following year after purchase of a new vehicle or when a new model or facelift is available. You may also be able to choose between market and retail value which can be quite a difference when looking at your premiums. Also ensure that your insurer has the correct vehicle make and model which is noted by the M&M code as well as any extras you have on the vehicle. Some models values can differ quite a bit which can in turn cost several hundred Rand on your premiums.

TIP 4 - BANKS OR INCLUDED INSURANCE IS NOT ALWAYS CHEAPEST

When purchasing a house, the bank or financial institution will include the insurance on your bond. These premiums could be extremely high compared to a regular insurer. They will also cover the property for the finance amount rather than the actual value. It is always best to get a professional evaluator to assist with the valuation of your premises. You should also include the fees charged for rubble removal and architect fees should you need to rebuild.

There are also deals on vehicles where it comes with free insurance for a year. This is great cost saving to clients and for the rest of the year you do not have to worry about getting cover, however it is wise to check that the policy offers fully comprehensive cover and that your details are correct.

TIP 5 - CHECK YOUR DETAILS ARE CORRECT

Have you moved premises or now use your vehicle strictly for private use. It is always good practice to advise your broker or insurer of any changes to your policy. Moving to a secure complex or different area may provide a discount on the contents and vehicle premiums. Perhaps you now have a garage for your vehicle, this will definitely help with premiums.

Everyone is human and makes mistakes, so checking that your license code or that it reflects date first issued rather than the renewal date will also ensure you are paying the correct premiums.

TIP 6 - DON'T FALL FOR THE MARKETING HYPE

Some insurers will offer some marketing hype to attract customers. Whilst some of these are great benefits such as cash back for not claiming, why not have the discount from the beginning and only if you claim would your premiums increase. Also you have to review the terms and conditions carefully. What if the claim is not your fault and a recovery cannot be done? Is there anything excluded in the policy for having reduced premiums. Some insurers will offer premiums based on the cover you want and while your vehicle is always kept in a garage and hail damage would not be a necessity, you may be on the road during a storm and this would matter.

TIP 7 - START EARLY

Starting out early will definitely help with your premiums. Most insurers work on a no claims bonus or loss ratio, the more years you go without a claim the lower the premiums.

This also falls true with your actual driver's license. It is unfortunate that new drivers will have to pay more for insurance as the risk is higher. However getting your license as soon as you can will mean that the insurer will think you have been driving for longer. Even if you do not own a vehicle, get your license soon as you come of age. 

TIP 8 - TRACKING DEVICES

Check your policy schedule to see if a tracker is needed. Some vehicles such as a Toyota Hilux or VW polo may have to have a mandatory tracker fitted. Then speak to your insurer or broker about the discount on premiums having a tracker versus the monthly tracker cost as it may be worth it to have one installed. Some insurer do offer free trackers with their policies but should you choose to cancel or move then the tracker will be for your own account. These trackers can come with high monthly costs making it difficult to move your insurance.

TIP 9 - THE EXCESS

Opting for a higher basic excess can reduce your premiums considerably. This however comes with a risk as you may not have the funds available to pay for this higher amount. You also have to weigh up how long you would go without an accident to make up the premium discount on the higher excess. Should you have a claim in the first year of your policy then having a higher excess surely will cost you more. If you do not drive your vehicle very far then the chances of an incident would be lower and the risk to have a higher excess would be beneficial.

TIP 10 - PAYING TWICE

With most insurance policies you will get Roadside assistance at a small additional cost. However you could already have this with your bank as some accounts offer free assistance on your vehicle as well. When purchasing a vehicle the finance house may include credit shortfall which can also be taken out on your insurance policy.

Perhaps you have opted for insurance on your cellphone or credit purchase in a store without thinking about it and then specify the items on your insurance. This is an easy way just to check if you can reduce your premiums