The annual Kinsey report by Malcolm Kinsey provides an overview of the South African motor vehicle industry, with a focus on the cost of parts for different vehicle models. The latest 2016 report covers 69 vehicles, compares the costs of various parts against competing models, and highlights price increases of parts such as wheel rims, car doors and lights, which are all found in the crash-parts category1.
“From the various costs presented in the report, one can see that not having Car Insurance could lead to significant costs for consumers should they be involved in an accident,” says Derek Wilson, head of online insurance and financial comparison website, Hippo.co.za.
“If you drive an entry-level city vehicle, for example, a VW Polo Vivo, you could pay up to R14 682 if you have damages to your doors and rear fender following a collision into the right-hand side of your vehicle,” says Wilson, “It could be easier and more cost-effective to simply pay a monthly Car Insurance premium than having to replace parts out of your own pocket following a claimable event”.
But did you know with just a few simple steps, you can also lower your monthly Car Insurance premiums and save even more?
Hippo.co.za provides these hacks that could help you save:
- Insurers are often able to adjust premiums based on lower or higher excesses (the first amount payable by the insured in the event of a claim). If you have sufficient means to pay a higher excess should something happen, you can opt to increase your excess which will lower your monthly premiums.
- Insurers encourage people to cover their goods at the replacement value it would be at the time of a claim, which can be either market or retail value depending on what cover you have. As the market value of a vehicle is lower than the retail value, you could opt to insure your vehicle at market value in order to save on monthly premium costs.
- If you have installed better security features such as a vehicle tracker or alarm system in your car or, for example, you no longer park your car in a car port behind locked gates but in a locked garage, always inform your insurer of these updates as it could lower your premiums.
- Even if you are not looking to change insurers, it always pays to double check that you are not paying too much. Shop around and compare quotes from at least three different Car Insurance providers to ensure you are getting the best value for your buck.