Good Ways to Keep your Insurance Costs Low

While insurance is considered a 'grudge purchase' it is without a doubt very necessary in order to protect you financially in the case of any unexpected accidents, loss, theft and so forth, and ensure your peace of mind.

However, this does not mean that you should choose the first insurer that comes along and simply pay them the required monthly premiums without question.

It is actually pretty easy to save a few rand here and there in terms of insurance costs, if you simply pay attention to a few helpful hints designed to help you save on your annual insurance costs:

Shop around? - Don't be afraid to approach multiple insurance companies in order to compare their products, rates, premiums, services, add-ons, service levels and anything else you can think of.

Often times you can find a lot of information via an insurer's website or simply call the company and pick the brains of their staff. Also, ask your family, friends and colleagues who they use and recommend. Word of mouth is a very powerful selling tool.

Choose a single insurer for all your short-term insurance needs - Often you can save money if you have your car and household insurance with the same company as they may offer you a reduction. Obviously split your insurance needs if you save more money by going with different insurers.

Request the highest excess you can afford - In general the higher excess you agree to pay your insurance company, the lower your monthly insurance premiums will be. However, before going this route make sure that in the unfortunate event that you need to make a claim that you can always afford to pay the higher excess.

Buy a car based on its cost to insure - While perhaps not the nicest way to approach buying a new or used car, by choosing a car with reasonable insurance costs you can save money. Also look at cars with features (such as anti-theft devices) that insurance companies love because the lower the risk attached to your vehicle, the lower your monthly premiums should be.

As your cars get older, reduce the insurance coverage on them? - As your car gets older and does more mileage, so its value will decrease and thus require less insurance. Rarely will insurance companies drop your premiums automatically. The onus is on you to call them at least once a year and give them your the car model, year, mileage and any other information they require, so that they can lower your premiums accordingly.

Keep your credit history clean - By keeping a 'clean' and 'unblemished' credit history, you will certainly ensure lower monthly insurance premiums. If you have a poor or a bad credit history, the chances are that insurance companies will see you as an increased 'risk' and raise your premiums accordingly.

By following these few simple tips, you may be surprised at how much money you can save.