Finding Short Term Car Insurance

Written By: Tom Martens on December 26, 2009 No Comment

If you are researching short-term car insurance, you’ll be sure to find out that prices are high, and could continue to rise. South Africa is a high risk environment for insurers. Knowing why and what you can do lower these costs for your situation is important in helping you make the right decisions.

Industry experts cannot ignore that South African roads are increasingly dangerous. The country is often a leader in traffic injuries and fatalities. The privilege of driving is constantly being extended, even to those who are not qualified drivers.First, let’s examine what is driving the costs. Car insurance risk is the major culprit behind higher short-term insurance premiums.

Younger drivers have always been viewed as a higher risk. Drivers aged’-30 historically pay the highest rates.As carmakers continue to upgrade their offerings, prices reflect those gadgets, leather seats, on-board computers and more. As car prices go up, so must the cost to insure them.

Insurers should consider that car theft and hijackings when they calculate their premiums. Statistics show a decline in thefts while hijackings continue to rise. In the homeowners insurance market the main factor is fraud. Some estimate that 6%-10% of short term insurance claims are fraudulent, that amounts to more than $2 billion yearly.

It is possible to ensure that these issues do not impact your insurance situation. You may not have any control over other people making fraudulent claims, but there are steps you can take to ensure that they do not affect your insurance premiums. For example, you can offer to take a polygraph test whenever you submit a claim. As a reward for honesty, some insurers will give you significant savings on your premium.

You can decrease your auto insurance premium by increasing your deductible. Keep this in mind while you are comparing quotes. Just make sure that you can afford the higher deductible in case you have a claim.

Maintaining a clean driving record not only keeps you safe, but can also save you money. If your driving record isn’t as clear as it could be, you can attend a driving course offered by car manufacturers or the Automobile Association. This can help clear negative history. Driving courses aren’t just for bad drivers, however. A driver with a clean record can attend to possibly lower their insurance premiums.

And, if you live in a high-crime area, consider moving. This can reduce both your car and homeowners insurance rates. Adding security devices can help as well. Anti-hijack devices and global tracking systems are good investments for this purpose.

The cheapest insurance is not always the best. Be sure the policy you choose provides adequate cover for your needs at a price you can afford.Finally, shop around for the best insurance rates. But be smart.

Tom Martens is the content syndication coordinator for Carinsurancesa.co.za. South Arica’s leading car insurance portal.