How to review your car insurance

Make sure you are fully covered with your insurance company at all times.
Make sure you are fully covered with your insurance company at all times.

The easiest way to reduce your current insurance costs is to shop around.

When shopping around you need to make sure you are comparing like with like and that the lower cost competitor is not just cutting benefits. These are some of the details where insurers differ:

> Does the cover allow for another driver? What if your child under 26 occasionally drives your car?;

> Does it provide a premium waiver if you are retrenched or disabled?;

> Is the car valued at market value or retail value? Insuring at retail value ensures you can afford to replace the vehicle with a similar make and model should it be stolen or written off;

> Is there a waiting period before paying a claim? Cheaper insurance may have a four-week waiting period on claims;

> What is the excess? The higher the excess you pay, the lower your premium;

> Do you have complimentary car hire if your car is being repaired after an accident?;

> Some insurers may look at the colour and make of the car to assess your risk. They may consider the driver of a white station wagon to be lower risk than a driver of a red performance car. Also, red cars are generally more expensive to insure due to the higher cost of red paint. 

Your insurance company may also provide a discount of up to 15% if you pay your premiums annually rather than monthly. This can be a good way to save money with your annual bonus.

Finally, people with good credit records and low claims history will pay lower insurance premiums – if you manage your finances properly, you save money.

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