Car Insurance Basics

How to Keep your Motor Insurance Premiums Low

March 10, 2015

Motor insurance is one of the costs that contribute a significant part to the overall operational costs of your car. These costs may be anywhere between 20 and 50 % of all maintenance costs a motorist incurs in a year, depending on the age of the car. Knowing what to do to keep these costs low can help keep your overall maintenance costs low. Here are some tips that you can use to keep your motor insurance premiums as low as possible.

1. Talk to Insurance Agents

The first tip we have to help you to keep your motor insurance premiums low is to talk to motor insurance agents. Motor insurance agents tend to have access to insider information regarding existing deals and the prevailing rates for motor insurance in the industry. If you view a motor insurance agent as a consultant, you can get access to this information. We encourage you to talk to a few of them and see who has access to the best deals.

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2. Take Advantage of No-Claims Discounts

Careful drivers have access to a no-claims discount that accrues annually. This discount can add up to significant saving if you have a consistent non-claims history. The purpose of the no-claims discount is to encourage policyholders to be as careful as possible on the road. In other words, this discount is the motor insurance company’s way of saying, “thank you” for giving them a good return in the previous year. Having no claims may not always depend on you because even to the most careful drivers can cause accidents. However, careless drivers have a higher risk of causing accidents compared to careful ones. This is why you should resolve to drive as carefully as possible to hopefully earn the no-claims discount. 

3. Negotiate for Flexible Premium Payments

This tip does not necessarily make motor insurance premiums cheaper in the absolute sense, but it makes it easier for you to make the payments. Many motor insurance companies will allow you to pay your premiums in two or more installments. The beauty of this arrangement is that it makes it easier and more affordable for you to make insurance payments. The flip side of this arrangement is that you will need to clear any outstanding premiums in the event that you need to make a claim before you finish paying your insurance premiums.

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4. Get a Variety of Quotes from Different Insurance Companies

The final tip we have is this, get an insurance quote from different companies, and make a decision on which one has the most affordable motor insurance premiums. Just like buying a car, shop for the best insurance rates in the market and find the one that best meets your needs. Insureafrika makes this process seamless and very convenient for you through its free online quoting form. All you need to do is to enter the details of your car, and you then get a prioritized list of quotes from different motor insurance companies. 

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