Some Tips to Reduce your Insurance Excess

Written By: Graham McKenzie on March 29, 2010 No Comment

Car insurance excess is a term which is used to describe how much money a person has to pay out of their own pocket in the event that they need to file a claim on their car insurance policy. This amount can vary quite widely based on a number of major factors. Despite this, there are methods which people can employ in order to reduce their excess.

The most common factor which leads to a high excess is the insurance premium. This is the amount which is paid out each month in order to keep the car insurance. Typically the more you pay out in your premium the lower your excess will be. Despite this fact it is often considered unwise to raise the premium just to reduce the excess. This is due to the fact that in most situations the higher premium over the course of time will far outweigh the cost of the excess should you ever have to file a claim on the policy.

For students, or parents who have children who are students and just beginning to drive, one method which is available for reducing the excess without increasing the premium considerably is to have good grades. Most insurance policies offer a good grade deduction. This is related to the fact that most insurance companies view students who get good grades as students who are more responsible and therefore less likely to have an accident which would result in a claim.

Maintaining a status as a good driver is another great way to reduce your excess and your premium. While most people believe that an accident will not be their fault the truth is that most accidents are caused by both people involved. By practicing constant safe driving habits you can reduce the risk of being involved in an accident by a considerable margin. Over time this will lead to both reduce premiums and a lower excess.

Another major step you need to take to ensure that you get a good excess is to make sure that you bring forward everything which may affect your insurance rates. Factors such as employment history, being married and even having children can all help to reduce your overall insurance premiums and even your excess amount. The best thing about these different factors is that they require no additional work on your part once the initial step of actually supplying the information is completed.

The most important thing you can do to reduce your insurance company is to shop around when you are looking for an insurance policy. There are many different insurance companies and they all offer similar services at different rates. Not only can this often lead you to getting a better insurance premium and a lower excess but it can also help to ensure that you have a reputable insurance company that will be there for you if you ever need them.

Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading Car Insurance portal, which helps people save on their Car Insurance.