When obtaining insurance quotes for your car and/or household possessions, keep in mind that the following factors could have an influence on your insurance premium:
HOUSE HOLD INSURANCE
If you live in high risk areas, insurance companies will increase your premium accordingly. You would therefore pay a higher premium for the same amount than someone living in a lower risk area. In other words you will pay more when living in Cape Town and surrounding areas than those living in the country side.
Roof & Wall Constructions
A residence with a non-standard roof (e.g. thatched roof) or walls is a higher risk than a standard residence, and will be rated accordingly by an insurance company. Standard walls will be bricks and cement where a standard roof will be tiles, asbestos and so on. Wooden structures will be rated as non-standard structures.
Based on the area you live in, insurance companies will stipulate the minimum security measures required at your residence. You can get a discount on your insurance quote when your security exceeds the minimum requirement. The normal minimum requirement is burglar bars at all windows that can open, out buildings included and security gates at all exit doors including sliding doors and entrance leading doors leading from the garage to house.
Type of Cover
Generally, your house contents are covered against fire, theft, water, wind and storm damage. In order to reduce the rate on your insurance quote, you can exclude burglary and theft cover, or exclude flood damage (not recommended though).
No Claim Bonus (Claim-free Years)
Your insurance history will also have an influence on your insurance quote. First-time insurers pay more for insurance cover compared to someone with proof of insurance. The discount is calculated in accordance with the claim-free years you've been insured.
With most insurance companies, you can increase your excess in order to reduce your monthly premium. A voluntary excess refers to an additional amount you're willing to pay when a claim arise. This amount will be added to the basic excess of the policy when you submit a claim. A higher voluntary excess will result in a lower insurance premium.
ALL RISK INSURANCE
Cell Phones & Notebooks
Be advised that cell phones & laptops and any type of electronic equipment have to be specified on your policy to enjoy cover. The unspecified all risk section doesn't provide cover for such items and such claims will be repudiated. So be aware. It's a good idea to specify valuable items that you take with you or wear on you as person.
As with household insurance, your premium will be calculated based on the area you live in. Based on statistics compiled by insurance companies over many years, certain areas are at higher risk for theft and/or hijacking of vehicles.
If you drive a high performance vehicle, you're a higher risk for the insurer and will end up paying more or be refused insurance cover due to the risk. The cost and availability of parts for your car will also be reflected in your insurance quote. You pay higher premiums on imported cars and certain makes and/or models.
The age of the registered owner and/or driver play a huge role when it comes to insurance quotes. Younger drivers tend to be involved in more accidents than older drivers. They have less experience driving on South African roads, tend to be less responsible drivers etc.
Type of Cover
The cover you select for your vehicle will also have an influence on your insurance quote. Comprehensive cover being the most expensive, then 3rd Party, Fire and Theft, and lastly 3rd Party only.
Use of your Car
If you use the vehicle mainly for private purposes, you'll pay less for insurance compared to someone using his/her vehicle for business purposes.
No Claim Bonus (Claim-free Years)
Your insurance history will also have an influence on your insurance quote. First-time insurers pay more for insurance cover compared to someone with
proof of insurance. The discount is calculated in accordance with the claim-free years you've been insured.
With most insurance companies, you can increase your excess in order to reduce your monthly premium. A voluntary excess refers to an additional amount that you're willing to pay when a claim arise. This amount will be added to the basic excess of the policy when you submit a claim. A higher voluntary excess will result in a lower insurance premium.
The type of vehicle and residential area will determine what security measures are required for your car. If your security exceed the minimum requirement of the insurance company, you could be eligible for a discount. In general, insurance companies only give discount for immobilizers (VESA or VSS approved), gear locks (VESA approved) and tracking devices.
If you have any non-standard extras on your car, you will pay an additional premium for the extras and is generally reflected on your quote. Extras could be air-conditioning, sunroof, mag wheels, car radio/cd shuttle, leather seats, canopy etc.
Your insurance quote would generally be based on the basic cover of the insurance company. Additional cover can also be obtained (at a premium of course!). Examples would be car hire, top-up cover (credit shortfall), roadside assistance, waiver of excess etc.
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