Motor Insurance

How insurers determine premium?
There are several factors that affect the cost of your premium, but your postcode is the one most likely to send it spiralling. You are a higher risk if you live in a city or urban area - especially if you park your car in the street. In this case, you will find your premiums are higher than if you lived in the suburbs or the countryside.

Another important factor here is your age. Newly qualified drivers, or drivers under 20, are deemed more likely to have accidents than older, more experienced drivers.
Old age can sometimes work in your favour. The older you get, the cheaper your premiums should become.

The make and model of your car also determines the premiums you pay. Insurance companies put car models into different groups - the higher the group number the higher the premium. Factors used to calculate group ratings include: the cost of parts and repairing damage; the time it is likely to take to repair the car; the availability of body shells; acceleration and top speed, and security features fitted as standard. Any modifications to cars will add to the premium too, because the replacement value of the car will be higher.

What you use the vehicle for, will also influence the premium. Vehicles used for business or commercial purposes will attract a higher premium than those used for personal private purposes only.

So how do I get a good deal on motor insurance?
While it is impractical to move house just to get cheaper motor insurance, there are ways of reducing the premium you pay:

If you haven't made a claim on your motor insurance you can build up a no-claims bonus (NCB).
When you claim, you will have to pay an excess - the first part of any claim. Redisure gives you the option to volunteer for a higher excess in return for lower premiums.
Your premiums will be lower if you can keep your car in a garage. If this isn't possible, there are a number of security measures you can take to reduce your premiums. Theft of cars costs insurance companies millions of Rands each year. A high proportion of your premium is used to cover the risk of theft, so anything you can do to reduce the risks should work in your favour. VESA -approved alarms and immobilisers should qualify you for discounts. Vehicle tracking devices also help to reduce your premium.
Make sure you know what limits apply to the policy before you take it out.
For example, cover for radio replacement may be limited.

You could consider changing your car for a smaller one if insurance is prohibitively high.
And finally, insure with Redisure!