This is according to Christelle Fourie, managing director of MUA Insurance Acceptances, who says unless otherwise instructed, some insurance companies will continue to charge the same premiums for the original value of the motor vehicle even though it is a few years older and has far more mileage on the clock. By conducting a yearly valuation of the motor vehicle before renewing the insurance policy, consumers could save money on their motor insurance.
Fourie says in addition to conducting yearly valuations there are other ways consumers can also reduce motor insurance premiums. "Currently, South Africa is experiencing a consumers market, which means most insurance companies and their brokers are open to negotiation. If consumers are looking for additional ways to reduce their monthly premiums, they should consider asking their insurance provider whether they can pay a higher excess for lower monthly fees."
She says another way for consumers to possibly reduce insurance premiums is to incorporate some form of vehicle tracking technology. "Insurers often charge lower premiums for those vehicles with a tracking technology, including microdot technology, as the car falls into a lower risk bracket as it will be easier to recover should it be lost, stolen or hijacked. Similarly, drivers who fit alarms or immobilisers to their vehicles could also benefit from lower premiums."
"Some insurers also offer reduced premiums for drivers who attend advanced driving courses because this improves the driving skills of the policyholder and reduces the likelihood they will be involved in an accident."
"Each insurer's premium is usually dictated by the underwriters risk assessment of the insured's particular risk bracket and while consumers cannot always change certain factors that may determine premiums - including age, gender, and driving history - there is often room for negotiation, so it is best to consult directly with a broker on how best to reduce motor insurance premiums," concludes Fourie.
