Comparing Car Insurance Premiums

Featured Image 6
John Duckett
John Duckett
Last Updated: 15 Sep 2020
(Rated from 344 reviews)

The advent of the internet has increased competition levels among car insurance companies. Since people can now sit at home in their pyjamas and comfortably compare the best car insurance rates and coverages, auto insurance1 firms are now more than ever under pressure to offer competitive deals. With the number of car insurance quotes online, you might, however, get confused on how to get the best deal.

Lucky for you though, here’s a comprehensive guide to help you save time, save money, and find the best car insurance quotes for your unique needs.

Sport Wheel

How to Get the Best Car Insurance Premiums

No one wants to spend a fortune on car insurance, but it isn’t always obvious how to get the best insurance premium2 rates.

Hundreds of insurance firms today, both small and established are vying for your business. Most have an eye-glazing assortment of policy choices and incredible premium deals, thus making it daunting to find the one that best suits your needs for a cheaper rate.

Well, here are five steps you need to take to ensure you get the best car insurance premium rates.

#01. Review Your Existing Policy and Assess Coverage

As you look through some of the car insurance quotes online, you first have to figure out the type of coverage that’s right for you.

If you’re looking to get a new policy to add on to your old one, you need to ensure that you meet your state’s minimum liability car insurance requirements. If you just bought a car and are looking to find the cheapest car insurance possible you need to understand the type of policy you need and which one would be the most suitable for you.

The four primary forms of car insurance policies3 are:

  • Liability car insurance – It safeguards others’ property damage and medical expenses
  • Uninsured motorist coverage4– it covers the damages to your car if another driver causes an accident but doesn’t have insurance. If you suffer severe damage to your vehicle in an accident caused by an insured driver, you’ll have to cater for the repairs of the car if you don’t have this policy
  • Underinsured motorist coverage – it provides you with financial protection for damages over what your standard insurance policy covers. 
  • Collision coverage – it helps cater to the expenses over the damage to your car in case of an accident. It only pays out up to the actual cash value of your car
  • Comprehensive insurance – it covers the risk of theft or damage to your car due to natural causes like hailstorms, floods, fire, and vandalism. Like collision coverage, the policy pays out up to the amount the insurance firm values your vehicle.

You also to decide on the deductibles5 that make sense to your situation. One of the most reliable ways to save on car insurance is by raising your deductibles for collision and comprehensive insurance policies. However, you need to keep in mind that if you have a claim, the deductible will be your out-of-pocket expense when repairing or replacing your vehicle. Thus, you need to ensure that you choose an amount that you can pay from savings.

Saving Money

#02. Gather Your Personal Information

When you know the type of policy you need, you then have to gather the following information to help you in requesting for a car insurance quote.

  • Your name
  • Birthdate
  • Driver license number
  • Make and model of your vehicle
  • Your vehicle’s colour
  • Driving history, including accidents and driving violations

Tip: When comparing car insurance premium rates online, you need to ensure that you compare the quotes side by side. It saves you from having to give out the same information repeatedly and having to write down the quotes on your own.

#03. Compare Car Insurance Premium Rates from Various Firms

After you’ve gathered the information, now you can start collecting car insurance quotes online. To do this, and to ensure that you get the best quotes and affordable insurance premiums, make sure that you request rates from more than five insurance firms.

You should also remember to compare the same coverage by using the same liability limits, deductibles and optional coverages. You should also ensure that you follow up with potential auto insurance companies about any car insurance discount you might qualify for. Motor insurance discounts mean that you’ll get lower insurance rates. There are discounts for those who:

  • Bundle auto insurance with other policies like homeowner’s insurance
  • Insure several cars with one policy
  • If you’re a student, you could get a good student discount
  • Have a clean driving record
  • Settle their annual or six-month premiums at once
  • Possess a vehicle with specific anti-theft and safety features. You might also get if you’re installed a telematics device
Blue Car

#04. Research Car Insurance Companies Before Purchasing A Policy

After doing all the necessary steps now, you can purchase a policy with the best premium rates. However, you need to ensure that you conduct some due diligence on the insurance firms that offered you the most favourable insurance rates. According to the National Association of Insurance Commissioners (NAIC)6, when you compare car insurance quotes, ensure that you:

  • Check with an insurance rating service, to find a grade or rating for the specific firm and reliable analysis of its finances so you can feel confident that they can quickly settle a potential insurance claim
  • Check to see if there any complaints regarding the firm
  • Peruse through some customer reviews and feedback on the insurer’s Facebook and Twitter accounts

After you’re sure about the insurance firm, then you can contact them and start the process.

Common Questions

Who Has the Cheapest Car Insurance?
How Does One Compare Car Insurance Policies? 
How Should You Shop Online for Car Insurance?
What Does Auto Insurance Quote Mean?

According to statistics, out of ten million motorists on South African roads, 65% are uninsured, even today, many people choose to drive uninsured over picking a cheap car insurance policy. So, to avoid financial risks, you need to ensure that you have peace of mind by getting the best car insurance policies. It’s also a good idea to learn how to take pictures for insurance companies. As the experts say, it’s better to be safe than sorry. So, ensure that you look through some of the best car insurance quotes and get the policy with favourable rates today and you save and also enjoy your time coasting through the Johannesburg and Cape Town roads!

John Duckett
John Duckett

John helps individuals get the best deal on car insurance. He advises on how to match client needs with budget and successfully negotiates with insurance houses to exceed client expectations. Working in the online space is his passion, he loves to share his knowledge on insurance and keeps an updated blog.

Car insurance tips

Are you ready to save money?

This checklist answers all your questions about the type of vehicle insurance cover you need, with information on the multiple options available.

Scroll to Top

Get in touch

We would be happy to help and advise if you have any questions or enquiries.
🔒 We Hate Spam as Much as You. 100% Secure.
Please select a valid form.