{"id":570046,"date":"2022-03-22T14:36:53","date_gmt":"2022-03-22T12:36:53","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=570046"},"modified":"2022-03-22T15:41:59","modified_gmt":"2022-03-22T13:41:59","slug":"factors-that-influence-your-vehicle-insurance-premiums","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/industry-news\/570046\/factors-that-influence-your-vehicle-insurance-premiums\/","title":{"rendered":"Factors that influence your vehicle insurance premiums"},"content":{"rendered":"<p>Many South African consumers, including <strong><a href=\"https:\/\/www.dialdirect.co.za\/products\/vehicle\/car-insurance\/\" target=\"_blank\" rel=\"noopener\"><strong>car insurance<\/strong><\/a><\/strong> holders, are facing financial challenges as a result of tough economic conditions.<\/p>\n<ul>\n<li><strong><a href=\"https:\/\/www.dialdirect.co.za\/products\/vehicle\/car-insurance\/\" target=\"_blank\" rel=\"noopener\"><strong>Click here for more information about Dialdirect&#8217;s motor insurance.<\/strong><\/a><\/strong><\/li>\n<\/ul>\n<p>Although motoring expenses may be difficult to afford, consumers should review their personal budgets and cut down on other costs before cancelling their <strong><a href=\"https:\/\/www.dialdirect.co.za\/products\/vehicle\/car-insurance\/\" target=\"_blank\" rel=\"noopener\"><strong>comprehensive motor insurance<\/strong><\/a><\/strong> policy.<\/p>\n<p>The high costs that come with an accident means driving without motor insurance could potentially result in sudden financial instability.<\/p>\n<p>Dialdirect is committed to providing value to consumers regarding insurance and encourage examining four critical aspects of their lives that have a direct bearing on their motor insurance premiums, namely, the insured individual, the vehicle, the policy, and the individual\u2019s children.<\/p>\n<h3 class=\"my-4\">How you influence your premiums<\/h3>\n<p>As an individual there are aspects of your premium amount you cannot control, such as age and gender.<\/p>\n<p>These have an effect on how your premiums are determined, but you can also look at factors to help you bring your premiums down to a more affordable level.<\/p>\n<ol>\n<li><strong>Driver\u2019s licence<\/strong> &#8211; With every additional year you hold a driver\u2019s license your premiums should decrease. The onus is on you to review your policy annually when receiving it in the mail and contact your insurer.<\/li>\n<li><strong>Vehicle usage<\/strong> \u2013 Whether you use your car for personal or business purposes makes a difference to your premiums. Update your policy whenever the situation changes.<\/li>\n<li><strong>Marital status<\/strong> \u2013 Married couples pay lower premiums than single and divorced\u00a0 people. Update your insurance policy if your marital status changes in order to ensure an appropriate level of cover.<\/li>\n<li><strong>Advanced driving course<\/strong> \u2013 Having one under your belt will help you remain safe and claim-free, but will also have a positive influence to your premiums.<\/li>\n<li><strong>Claims<\/strong> \u2013 With each claim, whether for a small scratch or a major dent, your insurance premiums go up.<\/li>\n<\/ol>\n<p>Review your policy two years after claiming \u2013 this is when your insurer will re-evaluate your policy and provide you with possible premium reduction opportunities.<\/p>\n<h3 class=\"my-4\"><strong>How your vehicle influences premiums<\/strong><\/h3>\n<p>Your car\u2019s value has a direct influence on the cost of your premiums, but there are other factors insurers take into account:<\/p>\n<ol>\n<li><strong>Retail vs. market value<\/strong> \u2013 Although retail value premiums are higher, it\u2019s this dealership equivalent value that represents the full replacement cost of the car.<\/li>\n<li><strong>Luxury high-performance cars<\/strong> \u2013 While these satisfy a particular lifestyle, they bring along a much higher insurance premium.<\/li>\n<li><strong>Location<\/strong> \u2013 The location and immediate surroundings of the vehicle when parked overnight is assessed and premiums are based on the level of security risk.<\/li>\n<li><strong>Security features<\/strong> \u2013 Any extra anti-theft systems like trackers or alarm systems will help bring down your premiums.<\/li>\n<li><strong>Vehicle model<\/strong> \u2013 Certain vehicle makes and models are much more popular than others, this also means they have a higher risk of theft. It\u2019s possible that less popular cars can end up with lower premiums, but ultimately security is more influential..<\/li>\n<\/ol>\n<p>You are obliged to inform your insurer when making changes concerning your vehicle.<\/p>\n<p>Make sure to check the vehicle values on your policy schedule and clarify any questions with your <strong><a href=\"https:\/\/www.dialdirect.co.za\/\" target=\"_blank\" rel=\"noopener\"><strong>insurance provider<\/strong><\/a><\/strong>.<\/p>\n<h3 class=\"my-4\">How your policy influences your premiums<\/h3>\n<p>Shop around for vehicle insurance quotes annually, but carefully compare all variables such as excesses and benefits to ensure an accurate assessment.<\/p>\n<ol>\n<li><strong>Loyalty<\/strong> \u2013 Be aware that when placing business with a new insurer, if the company believes you will change insurer again soon, they may load your premiums.<\/li>\n<li><strong>Self-insurance<\/strong> \u2013 If financially self-disciplined, you may choose to self-insure a portion of your insurance costs and reduce monthly premiums. If you opt to go for a higher excess and insure your car at market value, the savings could pay for the excess and difference in replacement value should you claim.<\/li>\n<li><strong>No claims<\/strong> \u2013 If you haven\u2019t claimed for a period of two years, you may be able to request a discount on your premiums or a cash back bonus depending on the insurer. After receiving a no-claims bonus, you could save this money and increase your excess for the amount you have saved. Apps like the <strong><a href=\"https:\/\/www.dialdirect.co.za\/app\/dialdirect-driving-app\/\" target=\"_blank\" rel=\"noopener\"><strong>Dialdirect Insurance App<\/strong><\/a><\/strong> is also a good way to instil good driving behaviour and being rewarded with cash back.<\/li>\n<\/ol>\n<p>Everyone\u2019s financial situation and claims history is different and it is up to you to structure your car insurance policy after careful consideration.<\/p>\n<p>Even if you don\u2019t intend changing insurers, make sure you\u2019re not paying too much on your car insurance premiums.<\/p>\n<h3 class=\"my-4\"><strong>How your children influence your vehicle insurance premiums<\/strong><\/h3>\n<p>The addition of children affects your car insurance premiums through your family\u2019s various life-stages.<\/p>\n<ol>\n<li><strong>Safer choices<\/strong> \u2013 The tendency is for young parents to trade in their often faster cars for larger and safer family cars, which comes with lower premiums.<\/li>\n<li><strong>Parenthood<\/strong> \u2013 Young family men with children are considered more responsible than their younger, single counterparts and will receive premium reductions<\/li>\n<li><strong>Combined insurance<\/strong> \u2013 Vehicle premiums are generally reduced when combined with <strong><a href=\"https:\/\/www.dialdirect.co.za\/products\/home-building\/\" target=\"_blank\" rel=\"noopener\"><strong>home insurance<\/strong><\/a><\/strong>. Couples with children often own their homes and can qualify for this reduction.<\/li>\n<li><strong>Teenagers<\/strong> \u2013 Premiums escalate when teens are included on your policy<\/li>\n<\/ol>\n<p>Before buying a new car, budget carefully for all associated monthly expenses including bank repayments, insurance premiums and credit shortfall premiums (where required).<\/p>\n<p>Should you use a finance agreement to buy a new car, you are contractually obliged to hold comprehensive insurance for the duration of your finance agreement.<\/p>\n<p>By making all monthly repayments, you build up a good profile at your bank and insurance company, which helps you cut down on your cost of credit and car insurance premiums in future.<\/p>\n<p><strong><a href=\"https:\/\/www.dialdirect.co.za\/products\/vehicle\/car-insurance\/\" target=\"_blank\" rel=\"noopener\"><strong>Click here for more information about Dialdirect&#8217;s motor insurance.<\/strong><\/a><\/strong><\/p>\n<hr \/>\n<h3 class=\"my-4\"><em>Sources:<\/em><\/h3>\n<p><em>Interviews with Christelle Van Den Berg and Sharney Nel from Hippo<\/em><\/p>\n<ul>\n<li><strong><em><a href=\"https:\/\/businesstech.co.za\/news\/banking\/142351\/12-tips-to-reduce-your-car-insurance-premiums\/\" target=\"_blank\" rel=\"noopener\"><strong>tps:\/\/businesstech.co.za\/news\/banking\/142351\/12-tips-to-reduce-your-car-insurance-premiums\/<\/strong><\/a><\/em><\/strong><\/li>\n<li><strong><em><a href=\"https:\/\/mayaonmoney.co.za\/2018\/10\/new-car-insurance-player-could-reduce-your-premiums\/\" target=\"_blank\" rel=\"noopener\"><strong>https:\/\/mayaonmoney.co.za\/2018\/10\/new-car-insurance-player-could-reduce-your-premiums\/<\/strong><\/a><\/em><\/strong><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Many South African consumers, including car insurance holders, are facing financial challenges as a result of tough economic conditions.<\/p>\n","protected":false},"author":57,"featured_media":570088,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10459],"tags":[11150],"class_list":["post-570046","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-news","tag-dialdirect"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/570046","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/57"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=570046"}],"version-history":[{"count":9,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/570046\/revisions"}],"predecessor-version":[{"id":570378,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/570046\/revisions\/570378"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/570088"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=570046"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=570046"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=570046"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}