Insurance Quotes – Need to Know

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January 24, 2017
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Insurance Quotes – Need to Know

When obtaining insurance quotes for your car and/or household possessions, keep in mind that the following factors could have an influence on your insurance premium

What to know on Car Insurance Quotes

1Your Residential Area is a factor
As with household insurance, your premium will be calculated based on the area you live in. Based on statistics compiled by insurance companies over many years, certain areas are at higher risk for theft and/or hijacking of vehicles
2Your Vehicle Type affects your premium
If you drive a high-performance vehicle, you're a higher risk for the insurer and will end up paying more or be refused insurance cover due to the risk. The cost and availability of parts for your car will also be reflected in your insurance quote. You pay higher premiums on imported cars and certain makes and/or models
3Your Age is a consideration
The age of the registered owner and/or driver play a huge role when it comes to insurance quotes. Younger drivers tend to be involved in more accidents than older drivers. They have less experience driving on South African roads, tend to be less responsible drivers etc
4Choose your Cover wisely
The cover you select for your vehicle will also have an influence on your insurance quote. Comprehensive cover being the most expensive, then 3rd Party, Fire and Theft, and lastly 3rd Party only
5What is your Car used for?
If you use the vehicle mainly for private purposes, you'll pay less for insurance than someone using his/her vehicle for business purposes
6No Claim Bonus (Are you Claim-free?)
Your insurance history will also have an influence on your insurance quote. First-time insurers pay more for insurance cover than someone with proof of insurance. The discount is calculated in accordance with the claim-free years you've been insured
7Voluntary Excess
With most insurance companies, you can increase your excess in order to reduce your monthly premium. A voluntary excess refers to an additional amount that you're willing to pay when a claim arise. This amount will be added to the basic excess of the policy when you submit a claim. A higher voluntary excess will result in a lower insurance premium
8Take Security Measures seriously
The type of vehicle and residential area will determine what security measures are required for your car. If your security exceeds the minimum requirement of the insurance company, you could be eligible for a discount. In general, insurance companies only give a discount for immobilisers (VESA or VSS approved), gear locks (VESA approved) and tracking devices
9Does your vehicle have Extras?
If you have any non-standard extras on your car, you will pay an additional insurance premium for the extras and is generally reflected in your quote. Extras could be air conditioning, sunroof, mag wheels, car radio/cd shuttle, leather seats, canopy etc
10Additional Cover
Your insurance quote would generally be based on the basic cover of the insurance company. Additional cover can also be obtained (at a premium of course!). Examples would be car hire, top-up cover, roadside assistance, waiver of excess etc

What to know on Household Insurance Quotes

1Your Residential Area matters
If you live in a high risk area, insurance companies will load your premium accordingly. You would therefore pay a higher premium for the same amount of cover than someone living in a low risk area
2Roof and Wall Construction
A residence with a non-standard roof (e.g. thatched roof) or walls is a higher risk than a standard residence, and will be rated accordingly by an insurance company
3Your Security Measures matter
Based on the area you live in, insurance companies will stipulate the minimum security measures required at your residence. You can get a discount on your insurance quote when your security exceeds the minimum requirement.
4The Type of Cover you choose
Generally, your house contents are covered against fire, theft, water, wind and storm damage. In order to reduce the rate on your insurance quote, you can exclude burglary and theft cover, or exclude flood damage (not recommended though).
5No Claim Bonus (Claim-free Years)
Your insurance history will also have an influence on your insurance quote. First-time insurers pay more for insurance cover than someone with proof of insurance. The discount is calculated in accordance with the claim-free years you've been insured.
6Voluntary Excess
With most insurance companies, you can increase your excess in order to reduce your monthly premium. A voluntary excess refers to an additional amount that you're willing to pay when a claim arise. This amount will be added to the basic excess of the policy when you submit a claim. A higher voluntary excess will result in a lower insurance premium.

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