Short Term Car Insurance

If you are researching short-term car insurance, you’ll be sure to find out that prices are high, and could continue to rise. South Africa is a high risk environment for insurers. Knowing why and what you can do lower these costs for your situation is important in helping you make the right decisions.

First, let’s examine what is driving the costs. Car insurance risk is the major culprit behind higher short-term insurance premiums. 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.

You will find that as more upgrades are offered on cars the price to insure those cars will also go up. And looking at history you will also find that younger drivers,’-30, will pay the most for their insurance.

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. 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.

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.

You need to keep a clean driving record because the more claims you have the less risk you have. If you already have an unclean driving history you can research driving courses that are offered by automobile manufactures and the Automobile Association, that can help offset negative history. This can be done by good drivers also. Most insurance companies will consider a reduction in your premium if you are able to attend and pass one of the courses.

It certainloy never hurts to install security devices. Not only will your rates be reduced, but your belongings will be secured. Devices that discourage car jacking, along with a global tracking system are wise choices to that end. If you can afford to do so, move out of neighborhoods known for elevated crime levels. Your car and homeowners insurance rates will decrease significantly.

You should look around for the best rates, but don’t just go for the cheapest. Make sure the policy you choose is adequate as well as affordable.

Tom Martens is the syndication coordinator for Carinsurancesa.co.za. South Arica’s leading car insurance portal.