How to make sure you get the most affordable vehicle insurance deal

Some people believe that vehicle insurance is beyond their financial reach. The good news? There are affordable vehicle insurance solutions that can protect your vehicle and your financial wellbeing.

The first step is to always make sure you know what insurance covers you need for your vehicle. Will you only need the basics to be covered or are you looking for a plan that includes a bit more than just the basics?

Here are a few factors that are used to calculate your vehicle insurance premium:

• The make and model of your vehicle: The type of vehicle you buy plays a role in setting the insurance premium.
• Your self-payment portion: Insurers refer to this as the excess. The higher the excess you agree to, the lower your monthly insurance premium will be.
• The type of cover you choose: You can choose between several types of cover, depending on your circumstances.
• Your track record: Previous claims, for example the number and scale of accidents that you have been involved in, if any.

Once you have chosen the insurance option best suited to your needs, it is possible to adjust your premium to suit your pocket. You can do this by asking your insurer the following questions:

• Am I eligible for a discount if I combine my household and vehicle policies?
  Most insurers offer a lower premium if you combine your vehicle and household insurance under one policy.
• Can my excess structure be changed to lower my monthly premium?
  Generally, you can pay a lower premium if you increase your excess payment. Be careful though, even if you save by having a lower premium on a monthly basis, you should be able to afford the high excess amount when a claim is submitted.

Are there any cover options on my policy? Comprehensive cover may not be required and may be changed to limited cover at a reduced premium, if your vehicle is not subject to a credit agreement with a financial institution.

• Do you offer value-added benefits?
  Some insurers offer more benefits than others, e.g., Santam has free SOS services specifically for vehicle owners who have emergencies on the side of the road.
• How flexible are you?
  Your insurer should allow you to change cover according to your needs. If you want to increase or decrease your excess; or change from limited to comprehensive cover, you should be able to do this at any time.

Will you still be adequately covered if you have a lower vehicle insurance? How to draw the balance between the premium payable and adequate cover

Whenever you have to choose between insurers, choose the one that offers a policy structured to suit your needs and your pocket. It’s not necessarily the insurer with the lowest premium, but the one that makes sure you’re adequately covered at the most affordable premium.

Lastly, remember that cheaper doesn’t always mean better, especially when it comes to vehicle insurance. There are a number of factors to consider when insuring your vehicle for your vehicle. If you’re looking for cheap insurance, it could cost you more than you think over a period of time.