What it costs to insure your car

2012-03-24 08:43

A reader writes:
If I buy a car for R100 000 and pay for a period of five years, having got a driving licence less than one year ago, how much will the insurance and car repayments be?

Maya replies:
Your insurance costs will all depend on your risk factors. According to Amanda Thomas, general manager of hippo.co.za, the make and model of your motor vehicle, where you live, where your vehicle is kept at night, who the driver of the vehicle is, what purpose your vehicle is used for and your previous claims history will all affect your premium.

“While it is not possible to control the portion of your premium that is affected by your car’s make and model, you can keep your premiums at an affordable level by claiming only when strictly necessary, ensuring that your car security is as good as possible, and driving safely to minimise the chance of being involved in an accident.

“Also remember that if your car is financed, comprehensive insurance is a must,” says Thomas.

As you are a new driver you will be paying a higher premium until you are able to demonstrate that you are a safe driver.

Your premiums would be in the region of R1 500 to R2 000 per month, so insurance is a very important factor when deciding on the affordability of a car. These premiums will reduce once you have driving experience.

In terms of the financing, using FNB’s online vehicle financing tool, you would pay R2 156 per month at a prime interest rate. For an interest rate of 3% above prime (12%) your repayment would amount to R2 306.

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