How to Save on Your Monthly Car Insurance Premium

The cost of living is rising, especially taking escalating interest rates into consideration. We need to discover ways to save money wherever possible.Below is a handy set of tips designed to help you reduce your insurance premium, as well as lowering your cost of living:

1) Request higher excesses.

Your Excess is the balance owed after the insurance has paid for damages. If you request a higher excess you will be lowering your monthly premium substantially. Unfortunately, should you be involved in an accident, you will land up having to fork out a huge sum of money, but this will be balanced out by the fact that you have been paying less every month.

2) Lose the coverage you don't need.

By dropping the collision or comprehensive coverage on your old jalopy, you will save a great deal of money. Realistically, the car has already devalued to the extent that your payout is pocket change anyway. Such coverage often is not worth it because any claim you make probably won't exceed the cost of the insurance and the deductible amount.

3) Buy the cheapest car possible.

Now while this may seem like stating the obvious, you would be amazed at the amount of people in South Africa driving cars that they cannot afford. Think about it, is the admiration of your friends and family really worth eating your cereal with a fork to save money on milk? Nowadays, with crime levels being so high, a cheaper car will probably attract less attention than a flashy one.

4) Combine your policies.

Generally by combining all of your policies under one carrier, you will receive a tidy little discount. If this does not work, I recommend doing the same thing anyway, but with a different provider.

5) Ask and you shall receive

One of my friends was recently told that his insurance premium was going up approximately R100 p/m. His immediate response was to start investigating other insurance companies. After receiving several quotes, he phoned his carrier and told them he was moving. They called him back an hour later to inform him that his premium would now be R50 CHEAPER per month. While it might not seem like it, insurance companies do occasionally try to keep their clients happy.

While these may seem like trifling, useless tips, you'd be amazed at the difference they can make. Even something as simple as lift clubs can make a significant difference to your monthly budget. When it comes to saving money, you want to start small, realistically you're not going to save R10 000 a month, but by making small changes, you can go a long way towards saving a useful amount of money.

About The Author Andries Malan is the owner of http://www.quantisure.co.za, a website that offers comparitive quotes for the cost conscious cheap car insurance quote shopper in South Africa.