Here’s everything that influences the cost of your vehicle insurance
We all know that times are pretty tough and being able to afford a car insurance monthly premium is one of those things that should be seen as a necessity over a luxury.
Trying to find ways to cut costs with tight budgets can be pretty tiring and, in all honesty – who has the time? Checking your auto insurance policy might not be something you do on a Saturday morning over breakfast, but the thing is, insurance is our bread and butter. We live for it.
And because of this, we have put together a list of factors that affect your car insurance monthly premium – knowing these might help you to save costs when it comes to insuring your car. For example, if your car is locked in a garage at night, this means you pay less in insurance.
The factors that affect your car insurance monthly premium
1. The type of cover
There are 3 main types of car insurance policies, these are:
Comprehensive car insurance: This type of policy means that your car is covered in the case of an accident, theft and fire. Third parties are also covered. This type of plan is more expensive compared to other plans.
Third party, fire, and theft: This type pf policy protects a third party or their property, as well as damage to your own car due to fire or theft. But damage to your own car because of a car accident is NOT covered.
Third party only (TPO): This type of cover is the minimum level of car insurance cover and is also the most basic. This kind of policy will protect other people, vehicle and property in the event of an accident that is seen as your fault.
Say what?
Third party insurance, also known as liability insurance, is when you (the first party) have insurance from your insurance company (second party) purely for the protection against claims of another driver (the third) party. You, the first party, have to pay for your own damage or losses to your car whether they were caused by yourself or the third party.
Discover: Do You Need Car Insurance Before You Buy a Car?
Here’s what you might not know: With Oneplan Car Insurance, we give you TOTAL control over what you want covered and at the price you can afford.
Here’s how it works:
We give you the option to cover as much of your vehicle as you want to. How we do this is using a sliding scale. Basically, you select the percentage of insurance you can afford, selecting cover from 30% to 95%. We cover you for stolen vehicles, damage due to accidents and vehicles deemed ‘written off”. We even offer third party cover.
2. Location
Where you live has a big impact on your monthly premium. Your location influences the chances of your car being stolen or hijacked. Living in a bigger city typically means that you deal with a higher chance of car theft or burglary – meaning you pay more.
3. Excess
An excess is the amount YOU have to pay in the event of a loss. It is basically the uninsured portion of your loss. This means that when you submit a claim, you will have to pay this portion. Normally, when you get in a car accident, you will have to pay the excess to the panel beater or mechanic for fixing your car. Your car insurer (that’s us), pays the rest.
If you are still confused, then you have written a blog post on it just for you.
When your excess is higher, you monthly premium is lower. It works like a seesaw.
4. The kind of car you drive
The more your car costs, the higher your premiums are. A sports car will cost you more each month compared to a Toyota Corolla.
5. Where you park your car
Where you park your car at night influences your monthly premium in a big way. Parking in the street at night could mean you pay more compared to parking your car in a locked garage.
6. The mileage you do
The more you drive, the more you pay as you spend more time on the road which influences your chances of getting in an accident. Limiting your yearly mileage could help cut costs.
7. Your security
If you have security gadgets like tracking devices, alarm systems or immobilisers, then your premiums will be lower.
8. How often you claim
Your history of accidents and claims influences your monthly premium. If you have a history of car accidents, you are seen as a bigger risk by your insurer, meaning you pay more for insurance.
Factors you can’t control
9. Your gender
Stats suggest that women are less likely to get in accidents compared to men. This is because they do not take as many risks on the road. This means that women sometimes pay less for their car insurance.
10. Your age
The older you are, the more driving experience you have – this makes you less likely to claim. Meaning your premiums will be lower. Younger drivers are a bigger insurance risk.
11. Your occupation
Your type of career, perhaps you are a salesman who is on the road a lot may mean that you drive more compared to someone who is office bound from 8 to 5. The more you drive, the more you are likely to pay.
Stats also suggest that people with certain stressful occupations are more aggressive drivers which can influence your monthly premium. Of course, if you want affordable car insurance, then we have got you covered.
Your Insurance Family,
Oneplan
