With insurance costs such a huge part of your overall motoring costs, it pays to compare various insurers to see which has the best possible deal. Don’t be swayed by sweet retainers like getting some or all of your premiums back if you don’t claim – threatening to switch to another insurer may cause your existing insurer to lower your premiums to more acceptable levels in line with that of others. It never hurts to simply ask.
DO THE MATH
A quick and easy way to compare one insurer’s premiums against another is to ‘do a Hippo’. Use the online comparative website www.hippo.co.za, enter your various personal specifics like age, location and excess options and be astounded by the outcome.
We recommend doing this before you buy a new car to see how much your anticipated new ride will cost you apart from the purchase price and other running costs. It may put you off a specific model entirely and swing you in another direction.
- Your age.
- How long you have had a license.
- How long ago you last had an insurance claim.
- Where the car is parked (garaged, open, behind security or not, etc)
- Type of cover required (comprehensive, third party only, or third party/fire and theft)
- Excess options
All of the above ultimately determine the premium outcome.
Let’s say you are a married woman in her early 40’s, living in a typical Johannesburg suburb and driving a 2012 VW Polo 1.4 Comfortline. Let’s also say that your Polo will always be parked in a locked yard. So, you’ve asked for comprehensive cover. This is what we found out: Rates varied from R508 per month with R8 000 excess from Regent to over R1 100 per month at Standard Bank, with a R5 000 excess. In between were Budget R687 (R5 000 excess), auto & general R720 (R4 800), 1st for Women R760 (R4 800), and dotsure R870 (R5 500). A lower excess results in higher premiums, and vice versa.