It’s not a ‘one-size-fits-all’ solution. Here’s how your lifestyle determines your car insurance needs and your premium.
Car insurance is not a ‘one-size-fits-all’ solution. Your premium is unique to you! But how is it determined?
Car insurance premiums are based on a variety of factors that are designed to assess the risk associated with insuring a particular driver.
While the exact factors that are taken into consideration can vary, here are some of the key components of car insurance (and your lifestyle) that could affect your monthly premium.
The driver:
Growing old is a gift when it comes to your insurance premium. Younger and less experienced drivers tend to pay more for car insurance as they are considered a higher risk.
The premium also depends on the regular driver specified on the policy. This may be one person or multiple people.
Driving record:
Risky drivers pay more. Drivers with a history of accidents and traffic violations are typically charged higher premiums due to the increased likelihood of future accidents or violations. If you want to reduce your premium, make sure you don’t have a need to speed!
In some cases, there might be a requirement for a vehicle inspection certificate or installation of a telematic device to monitor driving behaviours before issuing a policy.
Type of vehicle:
The make, model, and age of the vehicle being insured can also impact on insurance premiums. Vehicles that are more expensive to repair or replace, those with higher horsepower, or those more likely to be stolen, may be charged higher premiums.
Older cars may also have higher premiums as they may be more likely to experience mechanical issues.
Location:
Where you live and where the car is parked can also affect your car insurance premiums. Areas with higher rates of accidents or theft may result in higher premiums.
Similarly, if you live in an area prone to natural disasters such as hail, your premiums may be higher.
Usage:
The purpose and frequency of vehicle use can also impact premiums. Business use may result in higher premiums, as the vehicle may be on the road more often and for longer periods of time.
The time of day, days of the week, and the number of kilometres driven per month may also be considered.
By understanding the key components of car insurance that might influence your premium, you can make informed decisions about your coverage and potentially save money on your car insurance costs.
With dotsure.co.za’s Name Your PriceTM offering, you’re in the driver’s seat. Turn coverage you don’t need off and switch on savings. Get in touch with dotsure.co.za to ensure that you have the right insurance plan to cover your needs.
