Short-term car insurance will be expensive due to high risks. Knowing how to lessen the fees will help lead you down the correct path.
First, lets 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.
Younger drivers have always been viewed as a higher risk. Drivers aged-30 historically pay the highest rates.As carmakers continue to upgrade their offerings, prices reflect those gadgets, leather seats, on-board computers and more. As car prices go up, so must the cost to insure them.
Insurers should consider that car theft and hijackings when they calculate their premiums. Statistics show a decline in thefts while hijackings continue to rise. In the homeowners insurance market the main factor is fraud. Some estimate that 6%-10% of short term insurance claims are fraudulent, that amounts to more than $2 billion yearly.
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. Now, how can you overcome these factors for your own personal situation?
You can decrease your auto insurance premium by increasing your deductible. Keep this in mind while you are comparing quotes. Just make sure that you can afford the higher deductible in case you have a claim.
Keep a clean driving record. The fewer claims you have, the less risk you represent. If you already have a sketchy driving history, research driving courses offered by automobile manufacturers and the Automobile Association. This can help offset a negative history. This is also an option for good drivers. Most insurers will consider reducing your premiums if you attend and pass one of these recognized courses.
And, if you live in a high-crime area, consider moving. This can reduce both your car and homeowners insurance rates. Adding security devices can help as well. Anti-hijack devices and global tracking systems are good investments for this purpose.
Finally, shop around for the best car insurance rates. But be smart. The cheapest insurance is not always the best. Be sure the policy you choose provides adequate cover for your needs at a price you can afford.