8 Factors that increase your insurance premium

The amount you pay for insurance is impacted by a number of factors – some are in your control, and others are not. When it comes to low insurance premiums, shopping around will find you the best price.

Below are some factors that might increase your insurance premium:

Of course, it’s possible to source insurance on your own, but if you get some help from professionals who know what to look out for, you will probably get a better deal. Let MotorHappy’s agents source a selection of quotes from South Africa’s top insurance companies, and we will help you compare the quotes to make sure you’re selecting the best option for your budget and your needs. Click here to get started.

The excess is the amount you are liable to pay when you are in an accident or your car is stolen. If you choose a low excess amount, your monthly insurance premiums will be higher. However, if you choose a high excess amount to get lower monthly premiums, be sure that you are in a financial position to pay the excess if your car needs to be repaired or replaced.

To calculate your insurance premiums, companies look at how often you have claimed in the past. People who aren’t involved in many accidents or who haven’t claimed often will enjoy lower premiums and sometimes even cash-back rewards.

Comprehensive Coverage is the most expensive type of insurance because it covers your vehicle from fire, theft, hijacking, natural disaster, or an accident with another vehicle regardless of fault. In the event of a claim, you are only responsible for the excess to repair or replace your vehicle. If your car is financed, most banks will require Comprehensive Coverage.

Usually, the more luxurious and expensive, your vehicle is, the higher your insurance will be. This is because it’s usually more costly to repair or replace these cars.

The neighbourhood you live in impacts your insurance premiums – if you live in a high-risk area, your insurance premiums will be higher. If you park your car overnight in a locked garage, and if you have security features such as a vehicle tracker and an alarm, your insurance premiums might be lower.

If you drive your car for work throughout the day, your insurance premiums will be higher because more time behind the wheel usually means higher risk.

Younger, less experienced drivers usually pay more for car insurance. Coverage for men is usually more expensive than coverage for women because men are seen as a higher risk.